The important metrics for the BPSPX are the 30% and 70% levels and the 6 percentage-point reversals.
As the stock market was pounded into early April, the BPSPX fell so low it was a guaranteed buy signal on the come. Voila. The BPSPX shoots higher confirming that the trend has changed and the bulls are back in business. Stocks rally higher and test the key 70% level in early May punching up through. The bulls are unstoppable walking around with their chests puffed out.
The BPSPX tops-out at 76.40 on 5/19/25 so taking away 6 is the 70.40 level. If 70.40 fails, and then the 70 level fails, that would be a double-whammy sell signal for the stock market. It occurs with price down to 69.60.
Typically, the BPSPX and stocks would be falling like rocks but King Donnie keeps interjecting to keep markets happy and reward his crony friends, just like Sleepy Joe Biden. Grift is the key element of America's failed crony capitalism system.
Thus, the bulls need more orange head happy talk to send the BPSPX back above 70 and maintain buoyancy in the stock market. The bears want the BPSPX to continue lower which will guarantee that stocks head lower. Obviously, if Donnie threatens more countries with tariffs and bloviations that will kick-in the downside.
Note the tight standard deviation band. Wow. That tells you a huge price move is about to happen but it does not predict direction. It is like squeezing a tube of toothpaste. You know it will jump wildly out and somewhere but you do not know where. Maybe a Black Monday, or Black Tuesday, or maybe a Black Friday is in Vogue this season. Friday I'm In Love. 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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