Tuesday, July 19, 2016

BPSPX S&P 500 Bullish Percent Index

The BPSPX is back on a double-whammy buy signal for the stock market. In June, the BPSPX fell under the 70% level which is a market sell signal and then the six percentage point reversal occurs off the top creating a double-whammy sell signal. Price reverses six percentage points off the bottom from 50 to 56 issuing a market buy signal. Then the BPSPX overtakes the critical 70% level creating the double-whammy buy signal.

The market bulls are okay as long as they keep the BPSPX above the 70% level. Markets are in trouble if 70 fails since that will be an initial market sell signal. If a six percentage point reversal occurs from 72.20 to 66.20, that would create a double-whammy sell and stocks will be falling in earnest. Watch it closely each day 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 Sunday, 7/24/16: The BPSPX continues higher last week to the 74.40 level so the bulls are using the bears as a punching bag. The SPX prints a new all-time closing high at 2175. Same analysis holds; bulls are fine above the 70% level. Bears will growl if the BPSPX loses 70 and stocks will be falling in earnest under 68.40 (74.40-6.00).

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