Wednesday, May 7, 2014

BPSPX Bullish Percent Index Daily Chart Remains on Market Sell Signal Barely

The bulls are on the verge of creating a market buy signal. The BPSPX actually sneaks above 70 to 70.20 but closed exactly on 70. For the BPSPX, the six-percentage point reversals issue market buy or sell signals and the crosses at the 70% level provide thrust in the same direction. This current action is odd since, for the bulls, a cross above the 70 level would occur before the six-percentage point reversal would occur at 71.

The BPSPX remains on the double whammy sell signal but the bulls are trying to create a market buy signal today if price closes above 70. Bulls would receive a double whammy buy signal if BPSPX moves above 71 and the SPX will surely be headed to 1900 and higher. Market bears must make a stand today and prevent the 70-71 level with all their might. Check this chart after the closing bell today and watch it over the next few days to see who wins going forward. Note the sideways symmetrical triangle pattern in play with price teasing a break-out at the top rail. The BPSPX will bounce, or die, from this 70-ish level. If price returns inside the triangle the apex must squeeze a move out one way or the other within the next one to three weeks. 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.

Note Added 7:10 PM:  Unbelievable. The drama continues. BPSPX remains flat at 70.00 after the session.

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