BPSPX S&P 500 Bullish Percent Index Daily Chart

The six percentage-point reversals in the BPSPX are key and also the 70% level. Market bulls were in heaven at the start of the year but the bears took over reversing the BPSPX by six percentage-points off the top and sending the index under 70 in May. That was a double-whammy sell signal for stocks. The S&P 500 has been mainly moving choppy sideways.

The BPSPX bases at 67.40 so a six percentage-point reversal would be 73.40 to give the market bulls the nod with a double-whammy buy signal. The BPSPX moved above the 70 level in early June. The BPSPX floats higher and guess where those tops are printing at this week. Yep, exactly at ......... wait for it ........ 73.40. The bulls will receive a ticker tape parade and higher stock markets if they can push BPSPX above 73.40 but they stalled there.

The bull-bear battle continues. The bears are happy that the bulls do not yet have a six percentage-point reversal. The bulls are happy since they are above 70 and about to breakout higher to receive the six point reversal (so they think).

Watch the BPSPX next week. Any move above 73.40 and market bears are toast going forward. If the BPSPX begins slip-sliding away again and falls under 70, the bears will create carnage in the stock market. 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.