BPSPX Bullish Percent Index Daily Chart Signals Bear Market Ahead

The BPSPX topped at 79.4. A six percentage point reversal after a move upwards signals that the bears have taken over control. Thus, the bears need to see 73.4 and lower. This occurred yesterday which now signals a bear market ahead for the broad indexes.

In addition, once the 70% level fails, that seals the deal that the bears are well in charge and markets will be selling off in an extended pattern forward.  If the bulls can immediatley push the BPSPX back above 73.4 and higher they can right the ship, otherwise, they have lost control. Price has now lost the 20-day MA and 50-day MA.  Watch to see if the 20 stabs down thru the 50 which would signal further trouble. The RSI wants to see lower prices even after a bounce would occur, ditto the MACD line, stochastics and green ADX  line.  The purple box shows the ADX above the mid-30's verifying the strong upward trend in price, but alas, this strong uptrend is over.  Continue checking the BPSPX each evening this week to see if price drops under 70%, if so, the bears will put their feet up on the desk and light a cigar since markets will be weak for an extended period moving forward.  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 10/24/12 at 8:10 PM:  The BPSPX closed today at 70.60 a hair away from 70.00.