Thursday, September 25, 2014

BPSPX Bullish Percent Index Daily Chart

Now is a good time to check the BPSPX signal. A market buy signal occurs when the BPSPX reverses and moves six percentage-point higher. The all-clear double-whammy buy signal occurs when price then moves above 70% signaling nothing but blue skies ahead for bullish traders. A market sell signal occurs when the BPSPX reverses six percentage-points to the downside. The double-whammy sell signal occurs when price falls under 70%.

The BPSPX fell from 85 to 79 off the top so the bears receive and are currently enjoying a market sell signal since early July (type 'BPSPX' in the search box at the right to bring up prior charts for further study). The bears were drinking champagne and celebrating as they were about to drop under the 70% level receiving the double whammy sell signal, however, instead the bulls stage the comeback rally. From 71-ish, the bulls needed to hit 77-ish to signal the all-clear for bullish upside fun. It appeared a done deal especially with the non-stop Fed money printing constantly sending stocks higher. Instead, the bears eat some spinach and punch the bulls in the face stopping the upside attempt to take control. The BPSPX is now down at 70% again.

The bears are so close to the double whammy sell signal they can taste it. Watch the BPSPX closely and check the number after the closing bell. If 70 is lost, markets are going to drop far more and grow far uglier. The bulls can save the day and stop the slide if they can keep the BPSPX above 70. If 70 is lost, all hope for the bulls is lost. The pivot from this 70% area is going to firmly tell you the market story going 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.

Note Added 8:59 PM: The BPSPX ends the session at 70.20. The bears are only twenty cents away from creating a market event that will send stocks strongly lower. The bulls remain in the game but there is no space remaining to 70.00. Bulls must bounce the BPSPX tomorrow or they will fall down the rabbit hole if 70 fails. The tension builds.

Note Added 10:15 AM on Saturday, 9/27/14: You cannot make this stuff up. The BPSPX closes exactly at 70.00. The pivot above or below come Monday morning will dictate the directional path ahead for markets for the next few days. If 70 fails, bad things will happen to the stock market. Bulls must come to play on Monday morning to send the BPSPX higher, otherwise, they will fall down the steps.

Note Added 11:33 AM on Monday, 9/29/14: BPSPX loses the 70% level to 69 for a double whammy sell signal. Bad things will happen to the equity markets including another strong leg lower if BPSPX stays under 70.

Note Added 6:33 AM on Tuesday, 9/30/14: The BPSPX ends at 68.80 a very negative market signal. The bears receive the market sell signal reversing the BPSPX by six percentage-points at the end of July so you knew market weakness was on tap. Yesterday the 70% level is lost which creates a double whammy sell signal. Markets will tumble down the rabbit hole here forward--as long as the BPSPX remains under 70. Watch BPSPX closely the remainder of the week since it tells you the market answer moving forward. Bulls must push BPSPX above 70; otherwise the broad indexes will collapse.

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