Saturday Bullish Percents
Disclaimer: All charts and comments are intended for education and discussion purposes only. No investment recommendations are being offered. Please do your own research and take responsibility for all investment decisions that you make. Questions and comments related to this post are encouraged. | MON - Sector Strength | TUE - Interest Rates | WED - Market Breadth | THU - Commodities & Currencies | FRI - Market Sentiment | SAT - Bullish Percents | About | contact: HeadlineCharts@gmail.com |
This was not a happy week for the bullish percents. Last week's bullish percents are above and this week's are below. The bulls can't be too encouraged by bullish percents showing this number of shifts lower without a single shift higher. The only encouragement for the bulls is the number of bullish percents that held above the 70% level, and that the NYSE and Dow Industrials did not turn down. The major industry groups are leading lower, while the broader sectors and major indexes linger at high levels.
Above is the absolute performance for the week of the major sectors, and below is the relative performance. The strong areas were health care, which is probably a move to a defensive sector, and utilities, also defensive but probably oversold and benefiting from the recent small drop in long-term rates. Energy and financials had been the stars in the spring. Financials have been strongly out-of-favor for a number of weeks, but now energy may be also which is confirmed by the turn lower in the bullish percent. Tech seems to be holding the market up which feels like a thin reed at the moment. I like to see tech lead a market higher early in a cycle, but rotation into tech very late in this cycle seems like an attempt to find safe haven in an under-appreciated area. Tech looks like the only option at the moment as the other areas have already run up and are experiencing distribution.
