This second week of October was a strong one for U.S. Equities. Long-time readers are familiar with these Bullish Percent Indicator tables and this one shows the strength for this week.
All indexes are up this week and three moved into the over-sold zone. This means that 70% or more stocks within the index are bullish. Note the one outlier, the Dow Jones Industrial Average. While the DJIA moved up by nearly 17 points, Friday’s action dropped the PnF from an X to an O. The percentages on the left are more important than the X’s and O’s, but the right side of the table provides a quick visual picture of the market movements.
As with the broad indexes, the market sectors followed the same upward move with exception of Telecom. This sector is stuck at 51.16% bullish stocks. Staples, while up, did not move sufficiently to turn the O to an X. Otherwise, all sectors are in the offensive camp.
The last two weeks have been strong for the NYSE. What this graph shows is that it is time to load up on VTI (or similar ETF) when the graph dips below 30% bullish stocks.
The NASDAQ is highly correlated with the NYSE.