BPSPX Bullish Percent Daily Chart

Six percentage point reversals are needed with the BPSPX to signal that the market move in that particular direction is verified.  Starting with the October low at 22-ish, once 28 was hit (22+6=28), that signaled that the bulls had a head of steam.  The 30% and 70% levels are also critical. Once price moves above 30% that signals bull strength, and conversely, once the 70% level is lost that signals market weakness.  Thus, in October, the six percentage move occurred off the bottom and the 30% level was taken out so the bulls threw confetti and celebrated the October rally.

The October rally topped at about 77-ish for the BPSPX thus a 71 level would confirm market bearishness (77-6=71).  The 71 level was hit and then the 70% level failed ushering in the recent market sell off.  According to the chart, we remain in the bearish signal currently. The BPSPX is not on board with yesterday's market rally, at least as of today. Check the chart tonight.

With the 50 level low, a six percentage reversal to favor the market bulls is 50+6=56. The current reading to start the Thursday session is 54.80. Thus, the BPSPX will not verify the bull rally unless the price moves above 56%.  The market bears remain in underlying control of the indexes if the BPSPX stays under 56. If the BPSPX moves above 56, then the bull rally has legs.