Bullish Percent Indicators of major indexes and market sectors provides us with a broad look as to how U.S. Equities are performing. Nearly every week we see parts of the market move up while other sections move down. One simple way to keep score is to sum the net change for the indexes and sectors of the market. This week the indexes are up three and the sectors gained one.
Index BPI: Three indexes moved from defense to offense while the two major ones I follow (NYSE and NASDAQ) remained as they were last week. Four of the seven indexes are over-bought which means 70% or more of the stocks within these indexes are bullish. The overall view tells us to stick with our investment plans.
Sector BPI: Two sectors, Discretionary and Energy turned bullish while the Industrial sector dipped back to the bearish or defensive camp. Six of the ten sectors are over-bought while only Telecom is over-sold. The over-sold condition is when 25% or fewer of the stocks within the sector are bullish.
Bullish and bearish signals come from Point and Figure (PnF) charts or similar ones I use as the last screen before purchasing an ETF. This continues to look like a strong market as we move to close out 2017.