Tuesday, May 5, 2015

BPSPX Bullish Percent Index Daily Chart

The BPSPX displays circus-like moves as the global central bankers continue colluding to inflate all asset classes. The key with the BPSPX is the six percentage-point reversals and the moves across the 70% level. As March ended, the BPSPX drops under 70 and completes the six-point reversal off the top in late February creating  a double-whammy sell signal but if you blinked you missed it. The BPSPX quickly recovers back above 70% punching the bears in the face so the markets were split with both a bear and bull positive signal.

The bulls push higher into mid-April and create the double whammy buy signal with the six percentage-point reversal to the upside. That was short lived. Four days ago, the BPSPX drops under the 70 level and is down in excess of six points off the April top so the bears receive a double whammy sell signal for equities. The market bears are in good shape as long as the BPSPX does not move above 70. A move under 68 will open the door to a strong move lower in stocks. The drama continues. 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 9:14 PM EST: The BPSPX dropped to 67.40 today with the SPX losing 25 points.

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