Bullish Percent Indicators (BPI) of major U.S. markets and sectors is a quick way to gain a picture of overall market conditions. The picture this week is not a great deal different than it was last week other than a few sectors moved from defense to offense. While the New York Stock Exchange (NYSE) is not over-valued, there are parts of the market that are. We see this when the percentage of stocks within a particular index rise to 70% or above and thus coded red. Examples are: S&P 100, S&P 500, DJIA and particularly the DJTA as it carries a very high 85% bullish rating. That means that 85% of the stocks within the Dow Jones Transportation Average are showing a bullish trend as measured by the Point and Figure (PnF) graphs.
Index BPI: This week showed no position changes between the offense and defense. All major markets with exception of the two major ones, NYSE and NASDAQ, are on offense. The DJIA lost one stock to the bullish side, but overall the changes were minor. The major markets were essentially in neutral this week.
Sector BPI: Drilling down into the individual sectors of the market, we observed a few changes. Health and Technology moved from defense to offense. To make such a move there needs to be at least a 3% change in the number of stocks generating a bullish PnF graph. It is possible for such a change to take place within the week and then fall back on Friday so you cannot use the closing percentages to come up with this change.
Data for this information comes from StockCharts.