The BPSPX is on a double-whammy sell signal for the stock market. The two key metrics are when the BPSPX prints a 6 percentage point reversal and the 70% level. The bulls were partying higher in July and then the afterburners were flipped-on when price went above 70%. The bulls were partying like its 1999.
But the party peaked at 81. Taking away 6 is 75. The trouble started Monday with the BPSPX losing 75 issuing a sell signal for stocks. Then on Tuesday, price falls below the 70% level for a double-whammy sell signal.
The bulls need to reverse the BPSPX by 6 percentage-points or try to get back above 70% to lessen any selling pressure. The longer the BPSPX remains under 70% without a 6 percentage-point reversal, the longer the downside pain should be. 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.
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