The Bullish Percent for NYSE Stocks (^BPNYSE) reversed into a column Os following a roughly -3.5% decrease after Friday’s trading.
Friday’s (8/1) price action capped off a negative week for US Equity indices as the S&P 500 Index (SPX) fell -1.6% Friday to finish down -2.36% for the week (7/25 – 8/1). The majority of US Equity indices reversed into Os from recent highs on their point and figure trend charts with the Dow Jones Industrial Average (.DJIA) and Russell 2000 (RUT) moving to sell signals. While Monday’s trading brought about a rebound for brought equities, Friday’s (8/1) trading led to a notable decrease in participation as stocks returned to sell signals.
The Bullish Percent for NYSE Stocks (^BPNYSE)-—which measures the percentage of NYSE traded stocks that maintain buy signals on their default point and figure trend charts-—reversed into a column Os following a roughly -3.5% decrease after Friday’s trading. This marked the largest one day decreases in the NYSE bullish percent indicator since early April and ranked within the 98th percentile in terms of one day decreases for the ^BPNYSE going back to 1997. The bullish percent chart now sits at 52% and still suggests more than half of the more than roughly 1800 stocks maintain buy signals. It is worth noting that prior to Friday, the ^BPNYSE saw decreases of -1.64% (93rd percentile in terms of largest one day decreases) and -2.11% (95th percentile) on 7/30 and 7/31 for a three day decrease of -7%, the worst since early April.
Given the decrease in participation, there may be stocks within client portfolios that have broken down and should potentially be evaluated. While higher technical attribute names (TA rating of 3 or greater) may have returned to sell signals recently, these are likely names that have recently pulled back from recent rally highs. The stocks within the potential crosshairs are those who have seen decreases in technical attribute to 2 or below and violated notable levels of support in addition to recently returning to a sell signal. Examples of such are shown below.
AvalonBay Communities (AVB) – Real Estate – AVB began 2025 as a 4 technical attribute stock before falling to an unacceptable 2 for 5’er after seeing a negative trend flip in April and a reversal into a column of Os on the market RS chart in early July. On the default point and figure trend chart, AVB returned to a sell signal following Thursday’s (7/30) by breaking a double bottom at $196 before falling to the lower $180s by the end of the week. This brought the stock to a new 52-week low, and a chart level not seen since April last year. Given the technical deterioration as of late, holders of AVB may look to lighten up or step away here on the reversal back into Xs intraday Wednesday depending on cost basis.
Old Dominion Freight Lines (ODFL) – Transports/Non-Air – Prior to the past roughly 15 months, ODFL had been a consist high technical attribute name for much of the past 15 years. Over the last year ODFL has bounced around in terms of trend on its point and figure chart and technical attribute rating. Action in July brought about multiple trend changes before seeing the stock settle in a negative trend after breaking down during Thursday’s trading. ODFL capped off the week with a violation of support in the mid $140s and a multi-year low with a move to $142. The stock now trades as a 0 technical attribute rating for the first time since December 1999. Owners of ODFL will likely look to step away from the position given its technical deterioration and offering no near-term support on its default chart currently. For those that may be looking for a bounce from recent lows, note that notable resistance as developed in the mid-$170 to mid-$180 range.
