BPSPX S&P 500 Bullish Percent Index Daily Chart; S&P 500 Prints New All-Time High at 3399.54

The S&P 500 prints another new all-time record high today, 8/19/20, at 3399.54 a whisker from 3.4K. Timmy Trader opened one of the cardboard boxes of "SPX 3.4K" hats to the dismay of other more superstitious traders. Fat Sammy exclaims that Timmy has jinxed the markets and sure enough, equities roll over lower into the closing bell failing to print a new record close. The SPX all-time closing high is at 3389.60 on 8/18/20 (yesterday). Timmy tries to reseal the box but its too late; he jinxed the market.

The euphoric bull party continues with 76 days remaining until the US presidential election. What a wonderful farce it is. That's a trombone for every day. 76 trombones are in the big parade coming down main street now. It's the bread and circus days where every day is entertainment. Traders drink Fed whiskey, ECB champagne, BOJ sake and PBOC rice wine, and become plastered to the point that they will buy any stock with a heartbeat.

Novice investors are using new platforms that allow trading in micro-share lots. Sonny and Girlie, if you don't have the dough to play, don't. You are going to lose what little money you are investing. The stock market is likely printing a significant long-term top this year that may last for several years. Plan accordingly or one of these mornings you may find your head laying on a platter. Once the selling begins, you will be shown no mercy.

The Keystone Speculator's BPSPX Indicator issues buy and sell signals on the US stock market based on 6 percentage-point reversals and the 70% level since we are up high on the chart. The BPSPX currently remains on a double-whammy buy signal. Use the BPSPX to determine if the potential bear move lower has legs, or not.

Keystone posted this BPSPX chart a couple weeks ago. Remember the discussion about the prior pullback? On 8/23/20, call that closing high 76.40 so take away 6 and you get 70.40. Thus, if the BPSPX dropped below 70.40, that would issue a market sell signal and if the 70.00 level was then lost, that would be a double-whammy sell signal. The BPSPX dropped lower and lower and down to 70.80, the bears were cheering, and salivating, that they were about to bite into bull flesh but alas, the Fed promises more easy money and the vaccine makers promise a covid cure tomorrow, so the BPSPX catapults higher again with the stock market and the bulls stampede the bears turning them into flat rugs for the fireplace.

So the double-whammy buy signal remains in play and the SPX heads higher and higher printing new all-time record highs yesterday and today. That top-tick for the BPSPX is 80.20 so take away 6 and you get 74.20. Price is at 78.40. Thus, if the BPSPX loses the 74.20 level, a stock market sell signal occurs and equities are in trouble. If the BPSPX then loses 70, it is lights-out for the stock market. Equities will be falling like rocks with the double-whammy sell signal. The bulls simply need to keep the BPSPX above 74.20 and they have nothing to worry about.

If the stock market rallies on Thursday and the BPSPX remains above 74.20, equities will remain buoyant going forward. If the stock market sells off, but the BPSPX does not fall below 74.20, the bears got nothing and equities will recover.  If the stock market sells off, and the BPSPX loses 74.20, start running for your life if long. If stocks are decaying lower, and the BPSPX then loses 70, it's over for the stock market. Give it the next 1 to 3 days to play out.

A double-whammy sell signal would be Double Trouble but for now The House is Rockin' so don't bother knockin', come on in; there's some bad honky-tonker's laying it down tonight. 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.