Thursday, August 27, 2015

BPSPX S&P 500 Bullish Percent Index Daily Chart

It has been a long time since we had to explore the lower end of this chart. Long-time readers will remember that the 70% level is key as well as the six percentage-point reversals for the BPSPX. The chart has been in a double-whammy sell signal mode for the last three months since the BPSPX reversed six percentage-points off the top and fell under the 70 level. The double-whammy sell signal remains in place through the waterfall drop this week.

The 30% level is important at the bottom of the chart just as the 70% is at the top of the chart. With BPSPX dropping under 30, that indicates steady bearishness in markets and the selling should continue. The BPSPX bottoms in this near term at 22. A six percentage-point reversal would be 28. Thus, the bulls will receive verification that the stock market rally is strong and sustainable if BPSPX rises above 28. If price then rises above 30, a double-whammy buy signal will be in play and the stock market will be marching steadily higher. Market bears simply need to keep the BPSPX under 28 and the selling in equities will continue. The BPSPX is a slightly lagging signal and serves more as a verification of the current trend. For now, the bears remain in control. 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 10:32 AM:  Whoa! The BPSPX explodes higher to 27.40. The bulls are a hair away from receiving a market buy signal. Bears must hold the line here and stop any further gains in the BPSPX. Watch the BPSPX closely today and tomorrow.

Note Added on Friday, 8/28/15, at 10:20 AM EST: Yesterday the BPSPX exploded higher to 30.80 so the bears are told to sit down and the bulls receive a double-whammy buy signal for the stock market going forward. Bears will need to push the BPSPX under 30 to stall the upside. The bulls are driving the bus now with the BPSPX indicator.

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