After seeing last week’s action cap off positively for U.S. equity indices, short- to long-term indicators witnessed an uptick in response.
After seeing last week’s action cap off positively for U.S. equity indices, short- and long-term indicators witnessed an uptick in response. Short-term 10-week indicators and others saw further increases in their current column of Xs, with some nearing levels when the indicators began 2026. Intermediate-term bullish percents also saw increases, but perhaps the most notable uptick came from long-term indicators like the positive trend indicator for the NYSE (^PTNYSE).
Following Friday’s (4/17) trading, the ^PTNYSE) reversed back into Xs to 52% after having been in a column of Os since early March. The reversal puts the indicator back above the important level for ^PT indicators – the 50% threshold – which suggests more than half of the roughly 1800+ stocks within the NYSE universe are trading in above their bullish support line on their default point and figure chart. As a piece back in late March examined, the ^PTNYSE residing within the 40% to 60% range as provided more muted short- to intermediate-term returns. A move back to the 60% threshold would bring the ^PTNYSE back to where it began 2026, while a move into the lower 60s would mark the first time since late 2024. Either way a shift into a more elevated chart position for the long-term ^PTNYSE helps build the case for a healthy equity environment.
While last week’s action led to the reversal higher for the ^PTNYSE, the second quarter has seen 21 out of the 40 NDW sector positive trend (^PT) indicators shift back to Xs. The increase in sector PTs reversing higher has brought the average reading for the 40 PTs up from 37% to 43% and shifted the distribution curve of the 40 sector PTs from a slight skew to the left to a more normal distribution.
Seven out of NDW 40 sectors have seen their PT increase by double digits since the beginning of Q2 with the largest increase coming from the PT for semiconductors (^PTSEMI), which has climbed 26% on the chart to 80%, marking its highest level since early 2021. Two other notable NDW sectors with notable increases in their PT charts are machinery & tools (^PTMACH) and textiles (^PTTEXT), both up 16% on their charts. The PT for machinery & tools climbed from the mid-40s to just below 60% in PT reading, while the PT for textiles has rallied to the mid-20s, its lowest level since April last year, to the above 40%. While the majority of the NDW 40 sector PTs have seen an increase in their readings or charts since the beginning of Q2, three have seen decreases in their PT readings with the most notable being the NDW Oil PT (^PTOIL) dropping 12% from the mid-60s to 52%.
Given the shifts in PT indicators, NDW users will look to those sectors with higher readings for new potential ideas, while also monitoring current positions and whether their trend picture has or may be close to changing.
