Keeping an Eye on Bullish Percent
The Bullish Percent Indices measure the percentage of stocks on a Point&Figure buy signal for a given index. In general, an index has a bullish bias when its Bullish Percent is above 50% and a bearish bias when below 50%. The major indices are at the top, followed by the sectors.
As you can see, the Bullish Percents are above 70% for all the major indices. No sign of weakness here. Of the ten sectors, six have Bullish Percents greater than 79%. This is a sign of broad strength. Of the remaining four sectors, two are in the low 70s, energy is around 59% and telecom is around 55%. Using bullish percent to measure relative strength, energy and telecom are the least strong sectors right now. Of the major indices, the Nasdaq 100 and S&P 100 are the strongest (large-cap and large-cap technology). The bulls are in good shape as long as the majority of these Bullish Percents holds above 50%.
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