BPSPX Bullish Percent Daily Chart

BPSPX coming back down the last few days, from 82.5 to the mid 78's, or about a 4% drop. The key to a market trend change is the BPSPX reversing course by at least 6%, and in this instance, where the markets are bullish and turning negative, a failure thru the 70% level is critical as well. Thus, if BPSPX loses only two more percent, it will have the 6% verifying that the move down in the markets is sustainable. A loss of 70 is extremely bearish. First thing is first, watch to see if the 76.5 level is lost this week to signal more bearish times ahead.

Note the divergences spanking down price in February, bouncing price in March, and spanking price back down a few days ago (blue lines). In March, note how RSI and the MACD histogram were not positively diverged indicating that they actually prefer the BPSPX to be lower. Also note how the recent move down is not positively diverged and in fact, the pink lines all show that lower price is preferred.

The 20 MA moving back below the 50 MA would also verify further broad market weakness ahead. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.