Sunday, May 29, 2016

BPSPX S&P 500 Bullish Percent Index

The BPSPX remains on a double-whammy sell which is surprising considering the euphoric stock market rally last week. For the BPSPX tool, the six percentage-point reversals and the 70% line are key components. The BPSPX topped at 79.5 so six points lower is 73.5 which initiated a sell signal on the stock market. Then price fell under 70 for a double-whammy sell signal.

Price bottoms at 66.5 last week, so a six percentage-point reversal would be 72.5. Since the important 70 level is under that target, it serves as the first key for bulls to prove they have the beans to take stocks strongly higher. The BPSPX is at 69.60 only a whisker away from the 70 level that would issue a market buy signal. If the BPSPX then moves above 72.5, the bulls will be popping champagne corks as the stock market marches to new all-time highs.

Market bears must hold the 70 level with all their might to continue the double-whammy sell signal. Otherwise, the bears will begin slipping down a slippery slope as the bulls take control. The BPSPX will be worth monitoring all week long since it will verify broad stock market direction forward. 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 11 AM On Tuesday, 5/31/16: US stocks reopen for trading today after the Monday holiday and drift higher. The BPSPX is at 70.20 above the critical 70. The bulls are slapping the bears in the face; watch to see if the bulls can hold the 70% level today.

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