Thursday, February 13, 2014

BPSPX Bullish Percent Index Remains on Market Sell Signal

The BPSPX remains on a market sell signal. For this tool, a move of six percentage points to the upside creates a market buy signal and a move above the 70% level verifies the upside and a continued bull market. Conversely, a drop of six percentage points creates a market sell signal and a move below 70% locks in the strong negativity and forecasts bearish markets ahead.

The market bears received the sell signal mid-January and then the confirmation sell signal as the BPSPX fell under 70 in late January. The bears were drinking champagne. Then the 'V' bottom occurs as the BOJ yells Banzai! and starts printing yen like madmen, destroying their currency, sending the dollar/yen higher, and sending equities higher creating the near-term bottom. For such a strong multi-day rally in stocks it is surprising that the BPSPX remains limp. The bulls need a six percentage point reversal to receive a market buy signal. This is the 68 target (62+6=68). The market bears remain in control unless the bulls can move the BPSPX above 68. If price moves above 68, and then above the critical 70% level, a strong market rally will be firmly in place. Under 68, the bulls got nothing. Check the chart each evening as it develops. This information is or 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.

Note Added 4:30 PM: Markets rally today. BPSPX inches up further to 65.60, remaining 2.40 under the 68 goal the bulls need.

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