Monday, February 4, 2013

BPSPX S&P 500 Bullish Percent Index Rising Wedge Overbot Negative Divergence

The bullish percents are at lofty levels. The first red arrow is the spank down from last week due to the money flow, stochastics and MACD histogram negative divergence, but as is pointed out as most tops form, the RSI and MACD line remained long and strong wanting one more high in price.  That higher price has now occurred at 82.60 and universal negative divergence is in place so the door to the downside is open.

 The BPSPX issues a buy signal when price reverses six percentage points off a bottom, like the November-December action; the market buy signal occurred 12/10/13.  Subtracting six from 82.60 yields 76.60 so this is the magic number the bears need to receive a market sell signal and proclaim smooth sailing to the downside. The Other Signals page on this site discusses the BPSPX in further detail.  This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.
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4 comments:

  1. MCAPFebruary 4, 2013 at 6:57 AM

    Thank you again for all your contributions regarding all matters in the markets.

    ReplyDelete
    Replies
    1. AnonymousFebruary 4, 2013 at 7:20 AM

      Yes, KS is a great technician and a great person.
      Thanx, KS.

      V.

      Delete
  2. MCAPFebruary 4, 2013 at 7:20 AM

    looking at MWIV for a long - RIMM changes it name today - RIMM needs more than new "global creative director" as many investors are still singing the blues on that one from $100+ a share.

    ReplyDelete
  3. Keystone SpeculatorFebruary 4, 2013 at 8:14 AM

    MWIV may be a bit shaky, the weekly chart has universal negative divergence, rising wedge, overbot, it may be setting up better for a short play.

    ReplyDelete

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