In the process of updating the Bullish Percent Indicator tables, shown below, I noticed numerous upticks were new despite the percentage drop for the week. The S&P 500 is such an example. While the percentage of bullish stocks within the index dropped this week, Friday’s market showed a rebound as noted by the green X’s in the right-hand column.
Index BPI: Three of the major indexes flipped from offense to defense this week. Every index declined in the number of bullish stocks with exception of the Dow Jones Transportation Average (DJTA) and it remained constant at 45% bullish. As mentioned above, a few flipped from O’s in the right-hand column to X’s due to Friday’s market.
Sector BPI: Sectors of the market behaved in their usual erratic fashion with some bouncing up while others declined. It is not at all unusual to see shifts within different market sectors. While Staples and Financial sectors moved into the offensive camp, Industrial and Technology veered off into a defensive position. Technology is one sector I prefer to see positive as it tends to be a broad market driver.
As we move into the heart of Spring and look toward the Summer months, it will be most interesting to see if the LRPC model continues to recommend staying out of both U.S. and International Equities.