SPX S&P 500 and BPSPX Bullish Percent Index Daily Charts

The BPSPX sinks below 30% verifying the market weakness and traders throwing out the baby with the bathwater. The BPSPX is on a double-whammy sell signal. It needs to move above 30 for a buy signal and then above 33 (a 6 percentage-point reversal) for a double-whammy buy signal. For now, the bears continue flexing their muscles but the turn may be at hand.

The green circles show the bottoms in the BPSPX below the 30% level that resulted in bottoms in the US stock market. Once again, the BPSPX falls below 30 down to 27 so you should start thinking about lightening up on shorts and nibbling on longs.

The chart indicators are positively diverged wanting to see a bounce higher (green lines) sans the MACD line that wants a jog move before the BPSPX price bottoms. That would be a bounce tomorrow, but then lower again on Friday for a lower low, and if the MACD line goes possie d, that should be the bottom for BPSPX.

Of course, markets are highly emotional right now due to the Fed inflation drama and the bank failures on US soil and in Europe. ECB chief Madame Lagarde will be the big attraction in the morning and tell the world how she plans on fixing the banks and world markets. 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.