BPSPX S&P 500 Bullish Percent Index Double Market Sell Signal

We watched the six percentage-point reversal occur in July indicating that there was trouble in paradise. A six percentage point reversal receives either a market buy or market sell signal depending on the direction that price moves. Once that occurs, the key 70% level must be monitored since the double whammy signal occurs which locks-in that respective direction forward. The bears are on the market sell signal as the BPSPX continued to drop towards 70. The failure at the key 70 level looked like a done-deal but the bulls saved the day in early August creating a market rally. Actually, President Putin requested peace talks and was playing nice in Ukraine which created the early August market bottom.

The BPSPX climbed to 76 and was only pennies from receiving the six percentage-point reversal to place the bulls in firm control, however, the bears come in and slap the bulls in the face and the BPSPX collapses. Yesterday the BPSPX loses 70 to receive the double whammy market sell signal. Equities will continue lower and would be expected to take a strong leg lower as long as the BPSPX stays below 70. Bulls can recover if they move price above 70. Under 70 and markets are expected to fall down the rabbit hole. 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.