NYSE and NASDAQ Point To Slight Market Weakness
There were a few shifts between the defense and offense, but nothing that would cause investors to radically change their investment plans. The two major indexes, NYSE and NASDAQ dipped a small amount. Nothing earth shaking happened in the markets this week.
Index BPI: Most notable is the move from offense to defense for the S&P 100 and NASDAQ 100. It is likely the same companies caused these indexes to move together. The transportation average dipped this week and then snapped back on Friday. This is why we see the switch from defense (Os) over to offense (Xs).
Sector BPI: The data tells the picture as three sectors moved from offense to defense leaving four sectors still under the control of the offense. Half of the sectors are still over-bought and that is of some concern. Eventually we will see more sectors hovering around the 50% level as is the case for Discretionary, Staples, and Telecom.
The key is to watch the trends over the next few weeks.