Wednesday, May 18, 2016

BPSPX S&P 500 Bullish Percent Index Daily Chart

The BPSPX is on a double-whammy market sell signal. The BPSPX peaked at 79.70. A six percentage-point reversal constitutes a trend direction change and 79.70-6 = 73.70, which failed issuing a market sell signal. The drop under the important 70% level is very key and creates the double-whammy sell signal.

Check the BPSPX each day forward. If the BPSPX remains under 70, the stock market is toast and will begin tumbling lower going forward. If the BPSPX regains the 70 level, the bulls will recover and markets will at least remain in a choppy sideways direction. 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 8 PM EST Thursday Evening: The BPSPX continues lower to 66.6 so the bears cheer. Price under the 70% level is a major win for bears. The only way the bulls can confirm a trend change back to the upside is if a move above 70% occurs. Bulls would receive big time juice higher if a six percentage-point reversal occurs which would be above 72.6 (66.6+6). For now, the bears are driving the bus as per the BPSPX tool.

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