📊 Market Breadth — BPI & BPNYA

Bullish Percent Index, BPNYA (NYSE Bullish Percent) and sector rotation via sector BPIs

1. What Is the Bullish Percent Index?

The Bullish Percent Index (BPI) is a market breadth indicator that shows what percentage of stocks in an index are on a P&F buy signal. It does not measure the price of an index — it measures the health of the market.

BPI Value	Market Status	Interpretation
> 70%	Overbought	Caution: majority of stocks at the upper end. Do not aggressively build new longs.
50–70%	Bullish	Healthy uptrend. Buy signals have a tailwind.
30–50%	Bearish	Headwind for long trades. Increase selectivity.
< 30%	Oversold	Potential reversal. Contrarian setups possible.

The BPI cycles between "Bull Confirmed", "Bull Alert", "Bull Correction", "Bear Confirmed", "Bear Alert" and "Bear Correction" — depending on the P&F signals of the individual stocks and the BPI chart signal itself.

2. BPNYA — NYSE Bullish Percent

The BPNYA (NYSE Bullish Percent Index) is the BPI for all NYSE stocks (~1,800–2,000 names). It is considered the most important market breadth indicator for US equities.

Available in TradingView as the symbol $BPNYA. StockCharts.com also shows it as $BPNYA.

Signal	Description
BPNYA gives P&F buy signal	Buy: market breadth turns bullish — favorable environment for long trades
BPNYA gives P&F sell signal	Caution: market breadth turns bearish — increase risk awareness
BPNYA below 30 + turns upward	Contrarian signal: strong oversold level with first recovery

3. Sector Rotation via Sector BPIs

In addition to the overall market BPI, there are BPIs for every S&P 500 sector. Comparing them reveals which sectors are currently strong (many stocks on P&F buy signal) and which are weak — this is sector rotation.

TradingView Symbol	Sector
$BPENER	Energy
$BPFINA	Financials
$BPTECH	Technology
$BPHLTH	Health Care
$BPINFO	Information Technology
$BPMATE	Materials

Application: Compare sector BPIs weekly. Sectors with BPI > 60 and rising = strong. Look for long candidates there. Sectors with BPI < 40 and falling = weak. Avoid or look for shorts there.

Connection to Institutional Flow: Chapter 11.7 (Institutional Flow) shows how major players rotate sectors. The sector BPI makes this rotation visible — it is the quantitative instrument complementing the qualitative picture from the Institutional Flow chapter.