Friday, November 13, 2015

BPSPX S&P 500 Bullish Percent Daily Chart

The market bulls were celebrating as the month of November began. The BPSPX was already on a market buy signal since it had reversed six percentage-points to the upside and after it crossed above 70% the BPSPX was on a double-whammy buy signal. The wine was flowing like water as stocks enjoyed a robust rally. The BPSPX tops out at 72.2.

The BPSPX drops under the critical 70% level which is a negative signal for stocks, however, bears do not receive the full blessing until a six percentage-point reversal occurs at 66.2 (77.2-6.0 = 66.2). The BPSPX is at 68.2 so bears need 2 more downside points before they can pop the champagne corks. Under 66.2 and the stock market should fall in earnest. If the BPSPX recovers from here the bulls are fine and stocks will recover. If the BPSPX moves back above the 70% level, the stock market will be back in a strong rally  mode and bulls will place their feet up on the desk and continue sipping Fed wine. 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 Saturday, 11/14/15: Bulls are holding on by the skin of their teeth as the BPSPX falls to 66.40 yesterday only 0.20 away from the 66.20 level the bears need. The bulls are okay unless the BPSPX falls under 66.20 on Monday.

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