BPSPX Bullish Percent Index Daily Chart

The double-whammy buy signal remains in play for the market bulls. Recapping the prior history, the bears reversed the BPSPX six percentage-points creating a sell signal a few months ago and in early May price fell under the 70% level creating a double-whammy sell signal. The bears were throwing confetti and happy through the mini-crash event in the States and the all-out China stock market crash. Just as the 70% level is important above the 30% level is important below.

The bulls create an initial market buy signal when the BPSPX recovered off the 22.2 bottom to 28.2 (six percentage-point reversal) and then a double-whammy market buy signal when price moves above 30%. This double-whammy buy signal remains in place now so bulls are looking for a happy relief rally and recovery in stocks for the days and week or two ahead. However, the BPSPX sits exactly at 30.00 so any move lower will provide an initial market sell signal and be in concert with a sluggish stock market unable to move higher. The bears would actually need to print below 26.2 (a six percentage-point reversal from 32.2) to gain strong downside traction and more market carnage (double-whammy sell). If the BPSPX moves above 30 and continues higher the bulls are going to take the broad stock market higher. If this occurs and the BPSPX continues into the mid and upper 30's and even the 40's then watch for a six percentage-point reversal to the downside that would confirm that the bears are growling again. Type "BPSPX" in the search box at the right to study this indicator further. 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 8:20 AM EST on Wednesday morning, 9/9/15: The BPSPX jumps to 32.20 on the robust stock market rally so the bulls are singing a happy tune with all systems go for the upside with the double-whammy buy signal. Bears need BPSPX under 30 and also under 26.20 (32.20-6) or they got nothing. As the BPSPX rises keep subtracting 6 percentage-points from the high print which tells you where the bears need to get to if they want to growl.