The following Bullish Percent Indicator data butts up against my intuition as I thought the markets would show greater decline than what is actually reported below. Granted, most of the strength is showing up in tech stocks or the NASDAQ. However, the Dow Jones Transportation Average (DJTA) shifted from defense over to offense. That is a modest signal the economy is still healthy as goods are moving around the country.
Our primary index, the NYSE, moved down slightly as did the S&P 100 so we now have all the seven indexes finally below the over-bought zone of 70% or higher.
Index BPI: As mentioned above, two major indexes, the NASDAQ and DJTA moved from defense to offense so we now have over half showing X’s in the right-hand column when we check on the Point and Figure (PnF) graphs. Here is an example for the NASDAQ.
Sector BPI: The sector story is not quite so positive as we lost Industrial to the defensive team. If you look at the percentage numbers in the 6/5/2015 row you will see a number of declines this week. Discretionary and Technology are exceptions.
Both BPI tables provide us with the larger view of how the U.S. Equities market is performing as a whole. Overall, we see some weakness, but as yet it is not too serious. Don’t be surprised if we continue to see slight declines over the summer months so take particular care with new purchases.