The Keystone Speculator's BPSPX Indicator is on a stock market sell signal with the bulls and bears battling at the 70% level. The six percentage-point reversals and the 70% level are key for the BPSPX indicator.
The stock market was on a double-whammy buy signal when the BPSPX shot above the 70% level early November. The happy vaccine talk and the Federal Reserve and Congress promising easy money forever sends stocks to the moon. The BPSPX tags 81 so a 6-point reversal would be 75 and the bears push price below there receiving a stock market sell signal that remains in effect.
Note how the bulls have tried to battle back three times but the third time was not the charm. The BPSPX bottomed in late November and rallied but fell a couple-points shy of the six needed so price rolls over again. Then the bulls try to rally the BPSPX again in mid-November, and fail. Then the bears were ready to create stock market carnage by stabbing down through the 70% level but the bulls held the line at Christmas time, as they dine, and drink fine wine.
However, over the last two weeks, the bulls try to rally for the third time in the last couple months, only to fail again with the BPSPX dropping to 70.20 ending at 70.60. The bulls are frantically pulling all the furniture out of the house for the barricade. Old tires from the shed and even Aunt Betsy's rocker is thrown on top of the barricade to hold back the bears and protect the 70 level. The bulls must hold that 70% support level or they will be in for pain.
If the BPSPX falls through 70, that will be a double-whammy sell signal for the stock market and time to join Leadbelly and sing Goodnight Irene, Irene Goodnight. Bulls must prevent 70 from failing with all their might and at the same time push the BPSPX above 76 so they can regain control of the stock market. 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.
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