Bullish Percents Anyone?

Kevin Depew is out of the Minyanville pocket today, but when last he posted, he had some interesting signs of strength under the surface.

Just to review, he tracks the percent of stocks in a given index that are above their 50 Day MA, and pops them into a PnF chart.

For a chart to be “bullish”, it needs good field position, and to be in “X’s”. Good field position meaning it’s on the low end.

Anyway, yada yada yada, you won’t be tested, certainly not based on my lame explanation here. The concept is that it looks for some underlying divergences. And is a broader trend measure, not a short term prediction tool.

And divergence is exactly what we have now. Kevin looks at 5 different indices, the NYSE, the SPX (shown here) the Russell, the Nazz 100 , and the Nazz Composite. And all are in “X’s” right now and bullish. And making higher lows.

What’s it all mean? As Kevin points out, you had a similar pattern in 2002 into 2003. These charts troughed in July 2002, but the rallies all withered away until March 2003. So if history repeats, we’re like in November 2002 now.

…..Just an aside, but isn’t this drug hearing on Bubblevision just like that scene at the end of The Fugitive when Harrison Ford busts in on the Provasic report?

Damn that Devlin McGregor!