BPSPX S&P 500 Bullish Percent Index Daily Chart

For the BPSPX, the 6 percentage-point reversals are key and also the 70% level. In August, the BPSPX reverses 6 points from 64 to 70 which is a buy signal. This level also happens to be the important 70 level which is a double-whammy buy signal and stocks never look back into this year.

The BPSPX tops at 83.3 so taking away 6 is 77.3 the level where a market sell signal is triggered. If BPSPX fails at 77.3, then fails at the 70 level, that would be a double-whammy sell signal and big trouble for the stock market. Equities would be falling in earnest.

For now, the bulls remain in charge based on the BPSPX. The market bulls need to keep the BPSPX above 77.3 and that will keep the stock market bumping along sideways with an upward bias. 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.