The S&P 500 is now down over 41% in the past 12 months, something that you’d expect from a bear market. But, with the housing market depressed, the nationalization of the mortgage market, the disappearance of the Wall Street titans and the insovlency of some of the largest banks, we are seeing anything but a typical bear market.
That said, the NYSE Bullish Percent is now at 18%! For those unfamiliar, the NYSE Bullish Percent is the measure of stocks trading on the NYSE that are on Point and Figure (PnF) buy signals.
Last Friday, it stood at 4%. No surprise, considering the market had sold off for eight straight days prior to.
It was at 12% after Monday’s close. Again, no big surprise. We had the highest single day point gain in the DJIA.
However, the sell off we saw on Wednesday didn’t disrupt the percentage of stocks that are on PnF buy signals to any significant extent. In fact, the Bullish Percent increased to 18%!
I would have thought that the reading would have come back down to below 10% again. This is an odd development and hard for me to grasp. In effect, a divergence.
Hmmmm……Food for thought. Perhaps it is time to expect the unexpected.
By the way, the following stocks had relative strength buy signals triggered on Wednesday:
General Mills, Inc. [[GIS]] , National City Corporation [[NCC]] , Regal Entertainment Group [[RGC]] , and Aqua America, Inc. [[WTR]] , in case you’re looking for long ideas in the midst of extreme weakness and negativity in the marketplace.
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