Bullish Percent Indicators (BPI) provide us with a broad look at large index and sector movements for the U.S. Equities market. While I do not use either the index or sector tables as trading tools, I do watch them for general market trends and as guides to determing when the market is over bought or over sold. Right now the market is over bought and weakening.
Index BPI: One significant move this week shows up as the NYSE transferred the ball from the offensive team (X’s in right-hand column) to the defense (O’s in the right-hand column). In addition, with a 69.49% rating the NYSE moved out of the over bought zone. The move was not major, but sufficient to show weakening continues. The S&P 500 also showed movement from offense to defense. However, the S&P 100 actually picked up one stock as the percentage moved from 78% to 79%. Once more, Platinum members should keep an eye on NYSE, the primary index.
Sector BPI: What are the trends of market sectors? The following table of market sectors shows Discretionary and Energy moving out of the over bought zone. This brings to nine the number of sectors that are now in the hands of defensive teams. While one does not like to witness a declining market, these moves are a healthy correction to an over bought situation.
Readers who have been following The Feynman Study and subsequent ETF rankings are well aware of declining momentum in nearly all asset classes. There are a few exceptions such as gold and commodities, but the primary U.S. Equity asset classes are showing negative momentum percentages. The Point and Figure (PnF) data from market sectors and broad market indexes paint the same picture.