Tuesday, January 6, 2015

BPSPX Bullish Percent Daily Chart Double Whammy Sell Signal

The bears receive a huge feather for their caps today; the double whammy market sell signal. The six percentage-point reversals signal a trend change and a market buy or sell signal. When the BPSPX crosses the 70% level that creates a double whammy signal in the same direction. During the September-October selloff the bears were in clover with a double whammy sell signal in play until mid-October.

The bulls reverse the BPSPX six points from 41 to 47 receiving a market buy signal poking a thumb in the bear's eye. Stocks ran higher and the BPSPX went above 70 creating the double whammy market buy signal. In December, the bears push lower and were one single hair from obtaining the double whammy sell signal with a drop under 70 but the bulls fight back and created the late December rally to end the year in euphoria. The BPSPX peaked at 76 which makes for easy math. A reversal of six points is on the same 70 level so when price fell through 70 today the bears receive a double whammy sell signal.

This double whammy sell remains in place unless the BPSPX moves above 70 which would be a market buy signal again (but bulls will need to move above 76 to regain upside mojo and a double whammy buy signal again). The stock market is toast if the BPSPX remains under 70 heading lower. The bulls will be fighting back on Wednesday to try an at least regain 70. 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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