BPSPX S&P 500 Bullish Percent Index Daily Chart

The bulls run the SPX and tech stocks higher albeit on light volume. Television pundits shout down anyone that says a pullback or worse is on tap for the stock market. They scoff at the thought of a large pullback like February and March, and ideas of crashes, mini-crashes and/or flash crashes are preposterous. That's great. That is what you would expect to hear when traders, investors, analysts and strategists are euphorically bullish. Freddy, the shoeshine boy, said he took his entire paycheck last week and bot AAPL stock. Captain Jack, the doorman, says he took an entire paycheck and bot AMZN stock because he does not want to miss out on the easiest gains in history.

The BPSPX was on a buy signal in May during the recovery rally. The BPSPX crossed above the important 70% level which issued a double-whammy buy signal for stocks. Everyone was singing "Happy Days." The BPSPX tops out at 93 and reverses six percentage points to 87 issuing a market sell signal. Keystone's BPSPX Indicator issues signals based on the six percentage-point reversals and also the 70% level.

The BPSPX collapses to the 70% level ready to fall through which will issue a double-whammy sell signal and the stock market will fall apart but alas, the central banks step in as usual and the Fed promises unlimited easy money candy. In addition, King Donnie promises a $1 trillion infrastructure package and spending on other issues. Trump says, "Money is no object, no object." Trump likes to spend other people's money like all the other politicians.

So the BPSPX launches higher as the printing presses in the Eccles Building are humming 24/7 again. Price reverses six percentage-points to the upside so the bulls are back on the double-whammy buy signal and that is where it sits. A six-point reversal from 77.40, the high for the week thus far, is 71.40, darn close to the 70 level. So, there it is. 

If the bears push the BPSPX below 70-71, a double-whammy sell signal will occur and the stock market will begin falling apart. The bulls only have to keep BPSPX above 71.40, and they can continue walking around with their chests puffed out all proud of themselves as stocks rally. Keep a close eye on this over the coming days. If 70, is lost, it's over, especially since the BPSPX balked at that level days before. When it ruptures this time, it will probably break through to the downside with authority.

The bulls are keeping stocks elevated because of more central banker easy money. Traders are sniffing out a triple R cut from the PBOC perhaps this weekend. Do not be surprised if the filthy communists announce the easier reserve requirement ratios for banks about 5 PM EST Sunday evening right before US futures open and Asia stocks begin trading. The bulls may be able to keep stocks elevated hoping that China announces the triple R cut this weekend. The four central banker horseman of the financial Apocalypse, the Fed, PBOC, BOJ and ECB, are always riding in to save the day. Interestingly, the new moon peaks on Sunday morning, the darkest time of the month, and stocks are usually soggy moving through the new moon. Instead of happy days next week, traders may be opining to Chopin. 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 Saturday, 6/20/20: The BPSPX finishes the week at 75.40 four points from stock market trouble and five points and change from carnage. Bulls are happy but looking over their shoulders all weekend long.