BPSPX S&P 500 Bullish Percent Index Daily Chart

The 6 percentage-point reversals are important for the BPSPX and when times are bullish, the 70% level is key. The stock market was in rally mode during July. The Fed wine and Congressional champagne flows like water and the Good Times send stocks to the 80.20 top and closing high at 79.80 (red line).

Thus, taking away 6, is 74.20 and 73.80, respectively; call it 74. If the BPSPX falls through 74, it is a stock market sell signal. That is why price stopped short and is perched on this bull/bear line in the sand at 74 waiting on the AAPL and AMZN yearnings last evening and the US Monthly Jobs Report that drops in 4-1/2 hours. AAPL traded down -2% after its results and AMZN up +8%.

If the BPSPX drops, and then falls through the critical 70 level, it is a double-whammy sell signal and stocks will be falling like rocks.

Bulls need the BPSPX to bounce now; there is no more leeway. It is a bounce or die situation that depends on the jobs numbers. The wages component of the jobs report correlates to inflation so it carries clout.

If the 74 is lost, it leads to a weaker stock market. Remember, stocks are technically weak in the daily time frame currently. However, watch the 70 level because if price comes down and bounces there, that will signal that the bulls are not willing to give up the fight and a relief rally may occur after which another test of 70 would likely occur. 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, 8/5/23: The BPSPX ends the week at 72.20 issuing a stock market sell signal. Next watch the 70 level to see if a double-whammy sell signal kicks in, or not. Bulls need a six percentage-point reversal higher to save the day; that is 78.20 (72.20+6).

Note Added Wednesday, 8/9/23, at 7:45 AM EST: The BPSPX drops to 69.20 losing the 70% level issuing a double-whammy sell signal for the US stock market. Bulls need a six percentage-point reversal, that would be 75.20, to stop the negativity.

Note Added Saturday, 8/19/23: The BPSPX collapses to 55.40 continuing the double-whammy sell signal.