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IBD Industry Groups Bell Curve – Bullish Percent

Average Distribution: 32.45% (+6.87% 1wk)

  • 140 Groups (70.35%) are in the Stage 4 zone (Weak)
  • 40 Groups (20.10%) are in the Stage 1 or Stage 3 zone (Neutral)
  • 19 Groups (9.55%) are in the Stage 2 zone (Strong)

The IBD Industry Groups Bell Curve increased by +6.87% this week to finish at 32.45% overall.

The amount of groups in Stage 4 (Weak) decreased by 23 (-11.6%), and the amount of groups in Stage 2 (Strong) increased by 3 (+1.5%), while the amount groups in Stage 1 or Stage 3 (Neutral) increased by 20 (+10%).

Therefore, the overall distribution of the bell curve has reversed up from last weeks fairly low reading, where it had dipped below the key 30% level, which was approaching comparable levels to June and September 2022. But it has reversed strongly this week to make its first higher high for many months, but the average is still at a low level currently in the Weak Stage 4 zone (Below 40%), and so the overall weighting is still tilted to the negative side of the spectrum, with over two thirds of the industry groups with less than 40% of their component stocks on point and figure buy signals, and 7.37x as many groups in the Stage 4 zone than Stage 2 zone.

However, strong reversals above the key 30% level is one of the signals that we look for with this unique market breadth measure, as it's a contrarian tool. So the reversal highlights a change of behaviour over what we've seen over the last quarter. Hence, it's a short-term positive change, and thus would be the equivalent to a Bull Alert signal on a breadth measure like the Bullish Percent Index. i.e. the Offensive team is back on the field deep in our own half. So we are looking for opportunities on the long side to score against the market.

To compare against the previous blog post: IBD Industry Groups Bell Curve – Bullish Percent (27 October 2023).

Below is the Bell Curve line chart and the data tables of the IBD groups bullish percent in order of relative strength and the position changes over the last 1, 2 and 4 weeks.

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Disclaimer: For educational purpose only. Not investment advice. Seek professional advice from a financial advisor before making any investing decisions.