Tuesday, May 19, 2015

BPSPX Bullish Percent Index Daily Chart

The BPSPX peaked out at 75.4 in April. For the BPSPX, the six-percentage point reversals are key and also the 70% level. Thus, 75.4 - 6 = 69.4. When the BPSPX fell under 70, a market sell signal was verified. When the 69.4 failed, a double-whammy sell signal occurs and the bears are in business. It is very interesting and odd that despite the SPX and INDU printing new all-time record highs yesterday and today, the BPSPX remains subdued and the double-whammy sell signal remains in play.

The market bulls need to reverse the BPSPX six percentage points which would be to 69 to receive a buy signal and above 70 for the double-whammy market buy signal. The BPSPX lags the actual real-time price moves in equities so it is more of a confirmation signal. The bears simply need to maintain the downward path and keep the BPSPX under 69 to maintain the double-whammy market sell signal. It is very odd behavior for such a big thrust higher in stocks but the BPSPX remains subdued. The BPSPX hints that the bears should be pushing markets lower despite the higher prices in equities. The central bankers are extremely powerful, as seen today with the ECB happy talk and European stocks catapulting higher. The central bankers are the market. 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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