BPSPX S&P 500 Bullish Percent Index

The market bears were singing songs and carrying-on as stocks pulled back (slightly) during March-May. The SPX was on a double-whammy sell signal having reversed six percentage-points off the top and fallen through the critical 70% level. But instead of bear joy, the bulls fight back and punch the bears in the face starting late May.

The bulls regain the important 70% level a market buy signal but the situation remains in flux. A six percentage-point reversal off the bottom 19 trading days ago would be the 73.4 level (67.4 + 6.0) and provide a double-whammy buy signal for the stock market.

Thus, the stage is set. The market bulls win big if the BPSPX moves above 73.4. There will be nothing but blue skies and rainbows ahead. The bears win if the BPSPX falls back below 70 which would restart the double-whammy sell signal and move the stock market strongly lower. Who will win? 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.