Bullish Percent Indicators provide a wide range view of U.S. Equities, both indexes and sectors of the market. This week we can spot areas of recovery from the recent correction. While not a robust recovery, there are signs of strength in specific sectors. Readers who have been following the portfolio reviews know that I screen for the Vanguard sectors and add the top two performers to many portfolios for possible inclusion. Vanguard consumer (VCR) is an example of a high performing sector for the last few months.
Index BPI: Tech stocks are doing better as both NASDAQ indexes moved from the defensive camp over to the offensive group. The NYSE moved up, but not a sufficient amount to flip from O’s in the right-hand column over to X’s.
Sector BPI: Energy and Health are improving. We now have a majority of sectors on the offensive side of the fence. With three sectors back in the over-bought zone, caution is merited for Financial, Materials, and Technology.