Index BPI: There were no major changes in the major markets this week. The two DOW averages are still over-bought. Otherwise, the percentage of bullish stocks hangs just above the mid-point mark.
Sector BPI: More offense and defense rotation is taking place among market sectors. This is to be expected as we are slicing the market into thinner pieces. Financial took the big hit, dropping nearly 11 percentage points from 64.2% down to 53.7%. It was only a late rebound at the end of the week that kept Discretionary from flipping over to the defensive camp.
One sector to carefully monitor is the Health. Note that it is over-bought and has been for 15 of the last 16 weeks. The Kipling LRPC has been recommending healthcare ETFs such as VHT, IHF, IHE, and PJP. Despite the increase in bullish stocks this week, it might be time to lighten up on health care ETFs. At least be aware of this situation.