Friday, August 30, 2013

BPSPX Bullish Percent Index Daily Chart Triggers Market Sell Signal

The BPSPX triggers a market sell signal this week indicating that the market bears are in charge moving forward. During the May-June selloff, the BPSPX dropped under the 70% level, which created additional downside oomph, but alas, the bears were no match for all the Fed pumping talk that began late June and then the BOE and ECB easy money bazooka's on July 4th that catapulted global equity markets higher. This action created a six percentage-point reversal to the upside to trigger a market buy signal on 7/10/13 and the bulls received extra oomph since the BPSPX was above 70. The party continued, with the wine flowing like water, until the 8/2/13 market top.

The BPSPX peaked at 84.60 so a six percentage-point reversal is 78.60, which occurred this week on Tuesday. Note how the BPSPX dropped, and knowing the importance of the 78.60 level, tried to fight it off, but then collapsed down through. So a market sell signal is now in place. The bears will receive extra downside energy if the 70% level fails. The bulls need to push above 82.60 (76.60 + 6) to regain market control. More information is found on the BPSPX on the Other Market Signals page. 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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