BPSPX S&P 500 Bullish Percent Index

The Keystone Speculator's BPSPX Indicator identifies trend changes with six-percentage point reversals and the 70% level. The stock market remains on the double-whammy buy.

The BPSPX had already reversed six percentage-points to the upside and kept moving higher in July issuing a buy signal. Price then crosses above the 70 level and it was off to the races higher for the stock market with a double-whammy buy signal. The BPSPX peaks at 77. Thus, taking away 6 is 71. If the BPSPX loses the 71 level, a market sell signal is issued. If price then loses the 70 level, a double-whammy sell signal occurs.

The bears were salivating and high-fivin' each other at the end of July watching the BPSPX trail lower. Price hits 71 so it is about to issue the sell signal for stocks, however, the bulls slaps the bears in the face again, just like Lucy pulling the football away when Charlie Brown tries to kick. The euro moves higher after the ECB decision which tanks the US dollar over the last couple weeks. The weaker dollar pumps commodities, gold, silver and stocks into the stratosphere. The BPSPX floats higher preferring to stay in the double-whammy buy camp.

Considering the negative divergence on the SPX charts, and rampant complacency in the stock market over the last month, equities would be expected to fall going forward. Watch the BPSPX next week. As stocks begin selling off, if the BPSPX  again refuses to go below 71, the market will recover quickly. If stocks are selling off and the 71 level ruptures, then the 70 level gives way, this is verification that stocks will be dropping like rocks and sustainable downside is ahead. 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.