BPSPX S&P 500 Bullish Percent Daily Chart

Market buy signals occur when the BPSPX reverses six percentage-points to the upside and when price moves above 70%. Conversely, market sell signals occur when price reverses six-percentage points and when the 70% level is lost. On Friday, the BPSPX lost the 70 level issuing a firm market sell signal based on both parameters. As long as price stays under 70, markets will continue selling off.

The 70 level was teased during the June bottom but quickly recovered back above to negate the sell signal. Watch the 70 level closely since the bulls will either launch an immediate up move from here to establish a recovery rally, or, markets will continue selling off moving forward. The 70 level tells you the answer. For now, the bears have the six percentage-point reversal sell signal and the sub 70 sell signal so they are cruising lower. Bulls need to push the BPSPX immediately above 70% or they got nothing and are in store for a sustainable and extended downside market move. 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.