BPSPX S&P 500 Bullish Percent Index Daily Chart

The BPSPX is on a double-whammy buy signal after it reversed 6 percentage-points to the upside and then crossed above the 70% level. In late September, you knew consistent upside market joy would continue.

Market bears need to reverse the BPSPX by 6 percentage-points to create sustainable downside weakness in stocks. Lets call the top tick at 77.80 so taking away 6 is 71.80. The 71.80 would create a market sell signal and if the BPSPX  slips under 70, that will create a double-whammy sell signal and stocks will begin falling in earnest. The market bulls will remain joyous as long as the BPSPX remains above 71.80. If the BPSPX floats higher, simply subtract 6 from that top tick number and that will tell you when the bears are in firm control on the downside (it would be above the 71.80 number). 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 Saturday 12/16/17: The BPSPX finishes the week sticky at 77.80 so the above analysis holds. Bulls have no worries as long as BPSPX remains above 71.80. Bears take firm control of the stock market sending stocks lower when BPSPX falls below 71.80. When the 70% level fails, stocks will be tumbling lower in earnest.