Four of the seven major indexes moved into the over-bought zone this week leaving only the NASDAQ a little shy of the 70% mark. Sectors were more erratic as there were several shifts between the offense and defense positions.
Index BPI: Over all market strength is evident in the following major indexes. Tech (NASDAQ) is lagging the other indexes, but it will also moving above 70% if this market is to move higher. Tech is a good indicator to watch for long-term market moves.
Sector BPI: Bullish Percent Indicators were not as consistent for the ten sectors as Discretionary and Energy joined Telecom in the camp of the defense. Utilities flipped over to the offense (X’s) so there was only a net loss of one.
Sector Tranche Momentum Recommendations: Financials (VFH) and Industrials (VIS) are the consistent winners among the sector and bond ETFs that make up this potential portfolio. Broad market ETFs such as VTI, VEA, and VWO are also included for additional reference.
Note were one should not be invested. Bonds and Emerging Markets (VWO) are areas to avoid right now.