BPSPX S&P 500 Bullish Percent Index Daily Chart

Keystone highlighted the BPSPX in late July as the stock market topped-out. The BPSPX peaked at 76 so subtracting 6 percentage-points is 70. The 70% level is also a key bullish-bearish level for the BPSPX. Thus, the failure at 70-ish creates a market sell signal and the loss of the 70 level creates a double-whammy sell signal and whoosh, down she goes.

The near-term bottom a couple days ago is 46.20. The bulls need a six percentage-point reversal to create a market buy signal so that level is 52.20. The bears are fine as long as the BPSPX remains below 52. Bulls win above 52.

If the stock market sells off again and the BPSPX drops further, the 30-40 zone is critical since that will indicate that the stock market will need to recover and move higher. For now, the bulls are trying to boost the BPSPX and the next couple days are critical to see if the rally has legs, or not. During the big Monday up day, the trading volume was pathetic hinting at a lack of conviction. Of course, markets remain subject to President Trump's tweets, China's trade comments and central banker decisions and statements. 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 Thursday Morning, 8/22/19, at 7:24 AM EST: The stock market bulls pump the BPSPX to 50.60 call it 51 now only a point or so from victory at 52 when a market buy signal will occur. S&P futures, however, are fractionally negative two hours before the opening bell for the regular Thursday trading session so the bears are trying to curl the BPSPX lower.

Note Added Saturday Morning, 8/24/19: The stock market falls apart on Friday after escalation of the US-China trade war. The BPSPX drops to 49.80 so the sell signals remain in place.