May of 2019 ended with nearly every Bullish Percent Indicator (BPI) trending down. The U.S. Equities market is still not down to the December of 2018 values, but it sure is not a health situation. When examining the following tables, check both the percentage changes as well as the X’s and O’s.
Index BPI: Transportation took a big hit this week as the bears took over the DJTA. This index is now over-sold with only 20% of the stocks within the index showing bullish Point and Figure (PnF) graphs. All seven indexes are in the clutches of the defense.
Sector BPI: Sectors of the market are not doing much better. Action during the week did flip Utilities from defense (O’s) to offense (X’s), but all other sectors are under control of the defense. Energy is over-sold so expect a rebound sometime over the next few weeks.
I expect we will be on defense over the summer unless we see some stability in the tariff battles.