Monday, December 23, 2013

Keystone's BPSPX Bullish Percent Indicator Daily Chart

The BPSPX indicator remains in the favor of the bulls. The 70% level and higher indicates bullish markets while 30% and lower indicate bearish markets. The cyclical 5-year bull market continues so the BPSPX continues to favor the +70% top side of the chart but the 30% level will be explored in the future months or year or two from now when markets are in fear and panic mode. The other key aspect of the BPSPX to follow is the 6-percentage point reversals. This confirms the market trend and direction. The April selloff was confirmed this year but the bulls bounce the markets in mid-April and regained the upside nod. Then markets sold off in May with the bears once again receiving the go signal off the top but the bulls placed a 6-percentage point reversal off the June bottom to confirm the upside on tap again.

Markets sold off again in August so the bears thought this time was the time but alas, the bulls will not give up, since Uncle Bernanke is patting their behinds each day, and the markets recover in October and the BPSPX signal remains on the bull side. Note how the sell off a couple weeks ago was about to receive the bear confirmation, dropping from 85-ish to 79-ish, 6 percentage points, but, thwack, the bulls smack the bears in the teeth once again. This behavior at least confirms the validity of using a 6 percentage point reversal signal since the SPX did recover and is now printing new all-time highs. Thus, the October bull signal remains the favored direction. Bears got nothing unless they move the BPSPX under 79 and lower. If/when BPSPX drops under 70%, the real and serious  trouble in the markets will begin in earnest. 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.

Edit: The September low at 75 is the starting point for the upside move so 81 triggered the buy signal in October rather than 82, but same idea, it does not change much. The edit is mentioned for the sake of accuracy and completeness for those of you studying the chart very closely.

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