Index BPI: This past week we saw a net gain of two indexes moving from defense to offense. Large-cap stocks responded to market forces as gains showed up in the S&P 500 and Dow Stocks. Tech stocks pulled back a little as the NASDAQ flipped back to the defense. Overall, the market was positive based on BPI indicators. We are seeing a different story from Kipling spreadsheet projections.
Sector BPI: Market sectors also showed a net gain of two and we now see seven of the ten sectors are bullish. Staples gained a significant percentage and is now in over-bought territory. Sectors with the red background (left side of table) are over-bought sectors as 70% or more of the stocks within the sector are bullish.
Now that we are seeing the yield curve invert, it will be interesting to observe how long the broad market indexes and individual sectors remain this high.