BPSPX Bullish Percent Index Triggers Market Sell Signal

The BPSPX confirms the stock market rally through May and June into the July top. The BPSPX peaks at 84.60-ish so a six percentage-point reversal will trigger a market sell signal and confirm that down is the new trend direction. The 78.60 level failed yesterday triggering the market sell signal. The next step for the BPSPX is the critical 70% level. A drop under 70 triggers the double whammy market sell signal and firmly guarantees far lower equities going forward. The market bulls can limit the downside damage as long as they prevent 70 from failing. The bears rule the markets if 70 collapses.

The bulls can save the day with a six percentage-point reversal to the upside with BPSPX moving from 76.40 to 82.40. Thus, the bulls and bears are in a battle now in the 70.0-76.4 range with the Monthly Jobs Report number imminent. Bulls win above 82.40. Bears win big with BPSPX under 70 since this will begin locking in a far longer and more sustainable market correction of weeks and months. Type 'BPSPX' in the search box at the right to bring up the prior charts for further study with this technique of forecasting. 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 Sunday, 8/3/14, 2:56 PM: BPSPX drops to 73.80 but the bears need another four points before they celebrate with the double whammy sell signal (under 70). In the mean time the bulls will try to push the BPSPX above 79.80 (73.80+6) to prove they have the mojo back. Anything in the middle (73.8-79.8) will create a sideways texture for markets.