Sunday, August 6, 2017

BPSPX S&P 500 Bullish Percent Index

There is high drama with the BPSPX. As you long-time readers know, the crosses of the 70% level and the six percentage point reversals are key. In late March, the bears started to push the stock market lower with the 6 percentage point reversal off the top and then the drop under 70 in May had the market bears cheering. There was a quick flush in the SPX of about 45 points or so but if you blinked you missed it.

The bulls quickly fight back and in early June poke back above the 70% level creating a market buy signal. The BPSPX moves above 73.4 which is a 6 percentage point reversal so a double whammy buy signal is issued in July. The SPX jumps higher to print the all-time record high at 2484.04 on 7/27/17.

It was a ll wine and roses in July but then price drops like a stone. Remarkably, the BPSPX not only collapses through the 70 level but also prints a 6 percentage point reversal from 75.7 to 69.7. The market bears in one quick move are now on a double-whammy sell signal for the stock market. The Dow printed its eight consecutive record high on Friday at the record high at 22093. Traders are singing songs and drinking Fed wine.

The double whammy sell signal spells trouble ahead for stocks. However, if the bulls can sneak the BPSPX above the 70 level, they can hang in there and send stock prices sideways preventing a move lower. As each hour ticks by and the BPSPX remains under 70, the stock market is going to roll over to the downside. 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, 8/7/17 at 9:55 AM EST: The BPSPX sits at 69.40 as the new week of trading is underway.

Note Added Monday Evening, 8/7/17: The BPSPX ends Monday at, ...... wait for it........ wait a little more....... 69.94 a tiny whisker from the key 70.00 discussed above. Tuesday may be an eventful day in the stock market, one way or the other.

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