BPSPX S&P 500 Bullish Percent Index Daily Chart

The BPSPX remains on the double-whammy buy signal verifying the upside bullish price action for equities. The SPX prints another all-time record high last Friday at 3182.68. For the BPSPX, the 6 percentage-point reversals and the 70% level are key.

In early October, stocks bottomed and the BPSPX ran higher from 52 to 58 issuing a stock market buy signal. Then price went above 70 kicking in a double-whammy buy signal for stocks. That is where we sit. The bears tried to push lower from 74 but only made it to 71 and then price popped higher again on the happy US-China trade deal news.

At 75, a 6 percentage-point reversal is 69. The 70 level is key and if the BPSPX slips below here, stocks are in trouble. Lumping these two together, the 69-70 level is for all the marbles so watch it closely in the week ahead. If stocks sell off and the 69 level is lost, look out Nellie, Katy bar the door, equities are going to collapse lower and the BPSPX will be on a double-whammy sell signal. If stocks sell off or bump along sideways and the BPSPX remains above the 69-70 level, the bulls will be fine and stocks will recover and move higher. Easy-peasy. 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 Monday, 12/16/19, at 1:23 PM EST: Interestingly, the BPSPX is dead flat at 75 and not moving higher despite the wildly higher move in the stock market today. The SPX prints a new all-time high above 3197.