BPSPX S&P 500 Bullish Percent Index Daily Chart

The six percentage-point reversals are key and the 70% level for the BPSPX. The bulls were in a double-whammy buy signal in July. The BPSPX peaked in late July along with the COMPQ, NDX and RUT stock indexes (tech and small caps). At 75.5, a six percentage-point reversal is 69.5, so that 69.5-70.0 level was critical for the bears to capture. And they did as August begins.

The BPSPX performs a 6 percentage-point reversal and is under the 70 level for a double-whammy sell signal. This will remain in effect unless the price crosses back above 70. Bulls need the 70 level for a buy signal to counteract the market negativity and also a 6 percentage point reversal would be 72.80 for a double-whammy buy signal.

Despite the robust rally on tap for Monday morning, the BPSPX is on a double-whammy sell signal. If the BPSPX moves lower simply adjust the numbers so you can keep track as the chart proceeds. If the BPSPX remains under 70, any relief rally is that, a relief rally, that will then roll over and die again. 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.