The Bullish Percent for a sector or index is created by counting the number of stocks within the sector or index that are currently trading with a point and figure buy signal and dividing this by the total number of stocks in that sector or index.
Overbought levels are at 70% and above, while oversold levels are at 30% or below. A signal is given when the BP index trades through these levels and then reverses by atleast 6%. This almost happened within the energy sector today when its BP index rose 5.56% points from its low of 22.5% yesterday.
You might have to squint to see it below but there really is a tiny uptick in the energy BP index from a very deep oversold level. If we go by recent market behaviour, this means we have put in a significant intermediate bottom.
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