Few changes occurred in either the major U.S. Markets or sectors of the market. Two tables are shown below, with the first one focusing on the Bullish Percent Indicators of seven major markets. While we do not managed portfolios based on the following information, these two tables are presented to keep readers abreast of general market conditions.
BPI Major Markets: The only major change is that the S&P 500 went on the offensive. This is not a big surprise considering the continued strength of this market. While the economy slowly strengthens, long-term unemployment will continue to keep wages low.
Note that all the major indexes are now in the over-valued zone as the NASDAQ crept above the 70% line. It is only a matter of time before we see a correction, so stay alert. Regularly check the ETF ratings and stay away from ETFs that are underperforming SHY.
BPI Sectors: Energy dropped into the hands of the defensive team. Some sectors dropped in value while other moved up. Such rotation is normal. There is nothing here that would cause us to change any portfolios. Stay with the current portfolio plan.