Saturday Bullish Percents
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Last week's bullish percents are above and this week's are below. There was only one move this week and that was a shift higher by consumer staples. It makes some sense to see rotation to this sector as fund managers, who are required to be invested in stocks, move to an area of the equity market they believe will be hurt the least if the market corrects lower.
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 up.
Thursday's sell off was broad based on higher volume and clearly qualifies as a distribution day. But the internals didn't indicate it was the signal that the correction has started. It may be part of a topping process, but we'll need confirmation of that by watching how the market follows through from here.
Below is the chart of the up volume and down volume for the NYSE. A strong distribution day next week would show downside follow through and would sound a loud alarm since the market is at such high levels.
Thursday's sell off didn't result in a spike in new lows for either exchange, and, in fact, the new highs still exceeded new lows for both exchanges. This is a favorable sign for the equity market.
