Friday, April 18, 2014

BPSPX Bullish Percent Daily Chart Maintains Market Sell Signal

The BPSPX is unimpressed with the strong upside market orgy this week. The broad indexes jump about +2.5% across the board in only four short days. Note, however, the BPSPX moving only a paltry amount higher, so far. When the BPSPX reverses six percentage-points it issues a market buy, or sell, signal depending on which way the reversal occurs. Then when price crosses the 70% level the move receives stronger strength in the same direction with a double-whammy buy, or sell signal. The bulls receive the BPSPX blessing in February and markets run higher into March. The bears are anointed in March and early April leading to the market collapse the previous week. This negative double-whammy sell signal (reverse from 76 and change down to 70 and change and the drop under 70) remains in play.

The BPSPX bottoms a couple days ago at 65, hence, 65 + 6 = 71 target for a bull reversal. Since the critical 70 level is nearer, the bulls will receive upside rally confirmation if the BPSPX moves above 70 and if price moves above 71 the path to new all-time highs and the SPX above 1900 will receive the go ahead. Bears need to keep the BPSPX under 70 and they are fine moving forward since the market rally will only be a simple relief rally that reverses with stronger downside action beginning again. So check the BPSPX each day next week after the closing bell to see who wins moving forward. 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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