Bullish Percent Indicators have been off the radar for a few weeks and it is time to check in and see what is going on with the broad U.S. Equities market. As you will see in a moment, we are in a strong upward mobile market. As you examine the following tables, check the right side to gain a quick view of the various indexes and sectors. Then switch back to the left side to see the current percentage of bullish stocks and what changes occurred over the last few weeks.
If you need to know more about Bullish Percent Indicators or Point and Figure (PnF) graphs, here is a reference.
Index Bullish Percent Indicators
All indexes are bullish this week. This same action showed up at least one week of every month since last January. It has been a good time to hang on to equity ETFs.
It is rare to see an index hit 100% bullish stocks as we see this week for the Dow Jones Transportation Average.
It is rare for all sectors to come in with X’s or bullish indicators. There is generally one sector that manages a bearish signal and this week it is Energy. Check out Energy on the left side to see how volatile this sector has been. Last October it hit a low of 7.7% bullish stocks to a high of 100% back as recently as January 15th.
The following graph takes the NYSE data and presents it in the standard X and Y form. Anytime the value moves above the top red line, the NYSE is over bought and caution is recommended. That is the current condition of the New York Stock Exchange.
Below is the graph for the NASDAQ. While this index mirrors the NYSE, it is not unusual to see it trail when it comes to the percentage of bullish stocks. Right now the NASDAQ is not over-bought.
The best buying opportunities are when an index or sector drops below 30% bullish stocks.
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