Before entering the numbers for the major indexes and individual sectors, I try to guess what happened over the past week. Friday’s market was a surprise so I am guessing not many changes occurred this week. Otherwise, I would have predicted a down market, but not sufficient to switch from offensive teams to defensive teams. Let’s see what actually happened.
Index BPI: All major markets continue to be over bought or over valued since the Bullish Percent Indicators (BPI) are all above the 70% reference line. This simply means that the number of stocks in the particular index are bullish rather than bearish. The NASDAQ ticked up slightly. Otherwise the major indexes dipped a tad or held even. Nothing of significance happened this week in the major markets.
Sector BPI: Materials took a tumble as the defensive team took command of this sector. Otherwise – steady as she goes. As you can read the numbers, there were a few advances and a few declines. Telecom and Utilities did not change.
Most of the sectors, like the major markets, continue in over bought territory. As the economy continues to improve, this condition is likely to remain for many months. The bull market of the last 5.5 years has been nothing short of amazing.