The BPSPX issues a market sell signal this week. The six percentage-point reversals are key for the BPSPX as well as the 70% level. The bulls were on a double-whammy buy signal during Q4 as the Federal Reserve sends stocks higher with QE to make the wealthy class more rich. Isn't crony capitalism great?
The BPSPX peaks at 83 so taking away 6 is 77. Price slips through 77 a couple days ago issuing the market sell signal. If the BPSPX crumbles down through the 70 level, that will be a double-whammy sell signal and the stock market will be quickly deteriorating.
From this current 76 level, adding 6, is 82. The bulls need to push the BPSPX back above 82 to regain a market buy signal; that appears to be a tall order. Stocks may need to be punished for a while so the bulls can then step in at a lower level and more easily send price back up. For now, the bears rule the stock market starting on Monday according to the BPSPX tool. Watch that 70% level to see if it develops into a more serious double-whammy sell signal, or not. 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 9:54 AM EST: The BPSPX is at 75.0. The bears are winning.
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