BPSPX S&P Bullish Percent Index Daily Chart

The BPSPX remains on a market buy signal. For the BPSPX, the six percentage-point reversals are key and the moves through the 70% level. Markets topped to begin the year at BPSPX 84. The bears receive the market sell signal confirmation at 78 and then once price fell through the 70% level the bulls were running for cover with the double-whammy sell signal in place. As February began, the bulls mount a comeback and place a bottom. Once BPSPX reversed six points from 62 to 68 the bulls attained the coveted market buy signal. This provides further upside juice and once the BPSPX ran above 70%, the party hats were on and the wine corks were popped. Long traders are staggering along singing an optimistic tune.

Markets ran higher to print the new all-time intraday high last Friday at SPX 1883.97, only three sessions ago where the BPSPX printed a top at 76.50 we will call it. So a six-point reversal to create happy bears is 70.50. Since this is so close to the critical 70% as well, simply lump them together. Bulls have no worries about market downside and equities will remain buoyant as long as the BPSPX stays above 70. Once the BPSPX falls under 70, the market selling will be in full force with markets dropping lower and trending lower. 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 at 12:00 PM on 3/27/14: In the Wednesday, 3/26/14 session, BPSPX drops to 71.60. This is down about five points off the peak five days ago. One more point, under 70.50, would qualify as a six percentage-point reversal and create a market sell signal. Be sure and check the BPSPX chart this evening.