Bullish Percent Indicators give readers an overall view of U.S. Equities or the behavior of the broad U.S. market. That is what you see in the first screenshot below. The second table breaks the equities market down into ten sectors. Some sector sources also include Real Estate (VNQ). I don’t include this asset class in the BPI table as it is housed in nearly every ITA portfolio.
Keep in mind that the data below is weekly information and as such frequently shows “anomalies” or information where the X’s and O’s seem out of sync with the percentages. The NASDAQ 100 is a good example as the percentage of bullish stocks moved from 27% up to 36%. This is a move sufficient to shift O’s to X’s. Instead, we see the reverse move. This is strictly due to the market decline on Friday. If you look at the percentages we can conclude this was a positive week as all indicators, with exception of the Dow Jones Transportation Average (DJTA) moved up.
Overall, this was a good week for equities as the percentage of bullish stocks increased. However, it is still a relatively “weak” market as we have fewer bullish stocks and more bearish stocks. In general, this is a buying opportunity.
Energy is definitely the strongest sector and one where I would not be buying at this point. Technology looks attractive and that is why I’ve been picking up a few shares of QQQ on market dips.
While I am not one to speculate on market directions, my guess is that the U.S. Equities market will end the year higher than it is right now. This is assuming there are no more critical mistakes other than what is currently going on in Ukraine.