BPSPX Bullish Percent Index Daily Chart

The BPSPX is used as a confirmation signal for market trend. Whenever a six percentage-point reversal occurs, the markets are confirming in that direction. The 70% and 30% levels are important as well where a drop under 70 is trouble for equities and a rise above 30 is bullish for equities. This year the BPSPX has remained on the top side of 70 showing that the bulls are in charge.  In March-April, the bears took control of the markets but the bulls battled back and recovered in late April early May to send the broad indexes to new all-time highs. The bears regain control off the top when the BPSPX fell from 90 to 84 and remains in charge, however, the light volume rally over the last few days has the bulls fighting back ready to reverse the market downtrend.

The BPSPX fell through 70 which is a very bearish signal but the bulls will not let the bears shine. The central bankers pumped the markets over the last couple weeks to stop the 70 level from failing. The near-term bottom is at 68.80, so the bulls need to print above 74.80 to verify that this current rally is the real deal and markets are headed back up to prior highs. Thus, today's action is very important. The bears will try to push the BPSPX lower and move under the 70 level again to resume the market downtrend. Markets have to make  a decision today or tomorrow. 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.