A tool that we use to help confirm the overall market trend is the Bullish Percent Index (BPI). The Bullish Index is a popular market “breadth” indicator used to gauge the internal strength/weakness of the market. Like many of the technical market internal indicators, it is used both to confirm a move in the market and as a non-confirmation and therefore divergence indication. We always point out how in recent years technology stocks have been a relatively reliable indicator of overall market direction. In the updated chart below, Nasdaq shares continue to break down hard with the so-called FAANG stocks in correction territory. Quarterly earnings season is on deck and if technology shares don’t recover that should be considered a negative for the long-term health of the market.


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