Wednesday, February 5, 2020
BPSPX S&P 500 Bullish Percent Index
The six percentage-point reversals are key for the BPSPX as well as the 70% level. The stock market was on a double-whammy buy signal into and through the stock market top during the third week of January. However, the BPSPX had topped out at 83, so a 6 point reversal is 77, and price falls below 77 a few days later issuing a stock market sell signal.
Stocks weaken with the BPSPX falling down towards the 70% level (Keystone drew that line on the chart with his favorite purple crayon), ready to give up the ghost, and then boiiinngg; price bounces. The bulls step in knowing they have to hold the line at that critical 70% level. The bulls manage to rally stocks for a couple days with the BPSPX now at 72.
If the BPSPX falls through 70, it is over for the stock market. Equities will be falling like rocks receiving a double-whammy sell signal. The bulls need to create a six percentage-point reversal to regain their mojo which is sending the BPSPX back above 77. Between 71 and 77 is no man's land with the stock market deciding which way to go. In this 71 to 77 area, stocks should maintain an overall sideways to sideways lower bias. And the funky beat goes on. 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 Thursday Morning, 2/6/20, at 5:34 AM EST: The BPSPX finishes the hump day session at 72.80.
Note Added Thursday Evening, 2/6/20, at 6:10 PM EST: The BPSPX finishes the Thursday session at 73.40.