Few changes showed up among the major indexes even though the market hit a new high. One of our primary indexes, the New York Stock Exchanges (NYSE), did move into the over-bought zone. Bullish Percent Indicators provide a quick overview of market movement. In general, this market is what we call over-valued. While stocks can move higher, BPI data tells us to be cautious.
Index BPI: No changes in the offense-defense positions showed up among the major markets. The DJIA is still under control of the defense while all other markets are in the offense mode.
Sector BPI: Slicing the market into sectors usually shows where the changes are taking place and this week is no different. While Telecom is pinned at the 100% bullish level, Utilities took an unusual dip as did Health. Discretionary moved into the over-bought zone which is 79% or higher. It was last February when this sector was last in the over-sold zone.
Overall, both index and sector BPI values are much the same as they were last week. While a 10% correction would provide better buying opportunities, it does not appear as if that will happen soon. Stay the course by saving and following your investing model.