Skipping another week of BPI reporting seemed a possibility until I began to update the primary U.S. Stock Market indexes. In the following table you see this is the fifth time in 2018 where all indexes are bearish. Back in early February of this year most of the indexes showed the market to be over-bought or on the high side. This happens when the indexes move above 70% bullish stocks. Since the market decline last February, things have stabilized to where most of the indexes are now hovering in the 50% to 60% bullish stocks.
Index BPI: As for the market cooling, take the NYSE as the example. Back on 2/2/18 this exchange was a little over 70% bullish. This week the percentage of bullish stocks within the NYSE are 57.3%. The market does not become a real buy until the percentage of bullish stocks drop below 30%. The two primary indexes, NYSE and NASDAQ, are bouncing around the 50% to 60% range and if this continues we will end up with 2018 ranking as a relative quite year.
Sector BPI: Market sectors are not showing up much better than the indexes as eight of the ten are in the defensive camp. Three more sectors moved from offense to defense this week. It appears as if investors are shifting their holdings to lower volatility and higher income generating companies. The bullish trend of Utilities is why I come to this conclusion.
If you have been following the Top Tier recommendations, medical and health related ETFs are holding the top spots. This matches the Health sector below as it is one of two over-bought sectors.
While I do not use BPI information to manage portfolios, I do use this information to think about the broad movements of the U.S. Equities market.