Tuesday, May 30, 2017

BPSPX S&P 500 Bullish Percent Index Daily Chart

The BPSPX remains on the double-whammy sell signal forecasting weaker stocks ahead. Price reversed by the key six percentage-points from 80-ish to 74-ish issuing a market sell signal. Then the BPSPX fell through the important 70% level creating the double-whammy sell signal. The market bulls need to move price above 70 to end any potential stock market weakness. Then bulls would benefit above 73.5-ish (a six percentage-point reversal to the upside) receiving a double-whammy buy signal.

For now, however, the market bears are in control. As long as price maintains the downward bias, the bears will create weakness in stocks. Note the textbook H&S pattern (brown lines); it could have been pulled straight out of a technical analysis manual. The head at 80 and neckline at 70 forecasts a target at 60. Price typically back kisses the neck line after it fails giving the bulls one last chance to recover. Sometimes price simply collapses once it loses the neckline. Watch the 70 level. Bears win below. Bulls win above 70. 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 Monday Morning, 6/5/17: BPSPX finishes last week and begins the new week ahead at 69.20 a hair from the coveted 70% level. The drama continues. For now, the bears remain on a double-whammy sell signal for the stock market.

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