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Futures off fractionally

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Stock futures are fractionally lower this morning and currently show S&P futures (SP01U) down $.60, NASDAQ futures (ND01U) are off $1 and Dow futures (DJ01U) are lower by $16. Fair value for the S&P 500 today is $9.17. Computers are set for program buying at $10.47 and set for selling at $7.77.

Bullish percent updates for Stockcharts.com

A quick review to start the week on the current readings from the bullish percent charts has the NASDAQ-100 bullish percent ($BPNDX) now in the "oversold" area at 26%, but currently not showing any signs of reversing higher. A lot of risk has been taken out of this index in the recent two weeks for bullish traders, but current status still would indicate that caution should be taken by bullish traders. In March, this indicator reached a level of 12% before showing signs of reversing higher.

The broader NASDAQ Composite bullish percent ($BPCOMPQ) is also indicating that traders should be defensive with many four- lettered stocks as this indicator continues to show more and more stocks triggering sell signals on their charts. Current reading to start the week is at 47.4% of the stocks on buy signals, but this number recently was at a very high level on a historic basis at 56%. In December of last year, this indicator reached a low of 24% and then in April of this year was at 30%.

The bullish percent for the S%P 500 ($BPSPX) currently shows that 58.5%, or 292 of the stocks in this index are showing a point and figure buy signal on their chart, but this number has been dropping in recent weeks and just like the bullish percent for the NASDAQ-100 indicates that bullish traders should be cautious. In early April, this indicator reached a level of 38% before reversing higher.

And finally we have the bullish percent for the New York Composite ($BPNYA), which shows that 45% of the stocks remain on buy signals. This indicator on the New York Composite is near the high end of its range and remains in a column of X's (demand still in control), but a reading of 42% would have this index back into a column of O's and indicating a defensive posture among traders and investors. This is usually the last of the broader market bullish percent charts to reverse lower.

Jeff Bailey
Senior Market Technician

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