Saturday Bullish Percents
All charts and comments intended for education and discussion purposes only. No investment recommendations are being offered. Comments below related to this post are encouraged. | MON - Sector Strength | TUE - Interest Rates | WED - Market Sentiment | THU - Commodities & Currencies | FRI - Market Breadth | SAT - Bullish Percents | About |
Last week's bullish percents are above and this week's are below.
Red is a column of O's in a downtrend, blue is a column of X's in an uptrend. Below 30% is oversold, and above 70% is overbought. Yellow is a shift down, green is u p. | INDEX |
Who would have thought last week that the Dow Transports would go from a column of O's at the 40-level to a column of X's in the 70-level in one week. The collapse of oil prices drained funds from energy to the areas that benefit from low oil prices such as airlines. Also, last week's strength in technology turned on a dime and is now weakness leading the Technology bullish percent lower. The funds coming out of tech appears to be moving into the safety of strong balance sheets and under valued areas such as health care and big drug companies.
The sector rotation appears to be hinting at some internal weakness in the market, but the signals are not decisive yet. However, the weakness of the last few weeks in the bullish percents does show a clearer picture of internal market weakness as the indexes remain at high levels but on the strength of fewer and fewer companies.
Don't assume that the bullish percents can't start to turn up again from here. There have been plenty of cycles where the final stage shows a last gasp display of impressive strength. But that usually only produces some upward 3-box reversals that ultimately better define higher and easier-to-see stop levels and break down points.
