Before updating the major indexes and sectors of the U.S. Equities market, I try to intuit what likely happened over the past week based on impressions. This week I expected to find all indexes and sectors ensconced among the defense. How wrong I was or else all the data has yet to be published. The following bullish percent indicators do not reflect Friday’s major selloff.
Index BPI: I expected to see more over-sold indexes as we see with the Dow Jones Transportation Average (DJTA). Instead, we find three indexes in the offensive camp. This I did not anticipate. Assuming this data is correct, this past week was not as devastating as one might think.
Sector BPI: There are even more surprises among the sectors of the market. Five of the ten sectors moved from defense over to offense. Those are not bearish signals. This is such a stunner I’ll look at the data again after the Monday close. My “doubt meter” is pinned at the high end based on this data. Next week we will have a better picture of where this market is going. May is a critical month as many folks have their tax refunds in hand for potential stock purchases. This year that money might go into bonds or stay in cash.