While there are generally a few changes or flips between the offense and defense, most of the Bullish Percent Indicators showed minor changes this past week. Use the BPI information as a way to gain a broad view of U.S. Equity action. Over the last few months, developed international (VEA) and emerging markets (VWO) were the place to be invested. Use the Kipling spreadsheet to keep on top of the best performing securities.
Index BPI: Only the NASDAQ 100 shifted more than one percentage point this week as it moved from defense to offense. If you look at the left side of the table you see that the S&P 100 and DJIA are the two indexes that are still over-bought. Those are the two with bullish percentages at 70% or higher. What this means is that it is large-cap stocks that are holding this market up. Only a few companies are driving the Dow. Just another reason to be cautious in these market conditions.
Sector BPI: Drilling down into the market sectors we see two moved to offense while another two switched over to defense. The percentage shifts were rather minor for the week. From this data there is no reason to panic – either on the sell or buy side.