Sunday, November 16, 2014

BPSPX Bullish Percent Index Daily Chart

The BPSPX is a great confirmation signal for market direction the six percentage-point reversals are key as well as the 70% level. The bulls were in their glory in July but the BPSPX reversed six percentage-points creating a market sell signal as August began. The bulls fight back in August and only missed creating a six point reversal to the upside by a tiny hair. Markets then fell hard in September-October. The failure at the 70% level created a double whammy sell signal.

The bulls stage a comeback as the Fed, BOE, PBOC, BOJ and ECB colluded to create the rocket ship recovery rally. In mid-October, the six-point reversal occurs and the bulls receive a market buy signal. Equities are printing new all-time record highs as the BPSPX is testing the 70 resistance level. The move this week is key.

If price moves above 70, bulls receive the double whammy buy signal and the SPX is on its way to 2050-2080. If the bears hold the line at 70 and spank the BPSPX under 63.20 (69.20-6.00), the double whammy sell signal is back on the table and equities will be falling in earnest. Thus, check the BPSPX each day this week to see which side wins. 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.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.