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

The BPSPX will reverse six percentage-points to the upside to confirm a stock market rally but the chart shows lower lows occurring down to 43. Typically, a level of 35-ish identifies a key and important bottom in the stock market. You can see the October low was an easy call for a substantive rally ahead.

Ditto the March low during the banking crisis when the Federal Reserve stepped-in in to save the day in the rigged crony capitalism system (do you understand that capitalism does not exist or are you a stupid twit?). Protecting the privileged elite and the upper middle class sycophants that service the wealthy is all that matters in America.

The bullishness in the stock market is rampant this year and traders are anxious to buy dips. The December lows and June lows in the BPSPX were bottoms in the stock market with the dip-buyers tripping over each other to buy equities.

Thus, a bottom is coming in stocks but it is not here yet (big green circles). The SPX daily chart indicators are starting to form positive divergence to mark a bottom in that time frame but it is not quite there yet. The bottom in the SPX on the daily basis should occur this week.

The ole Wall Street adage, "Sell Rosh Hashanah and buy Yom Kippur," is in play and traders sold the markets over the last week. Yom Kippur is today so perhaps the bulls will want to dip their long toes in the water to see if the coast is clear. S&P futures, however, are becoming soggy. The full moon is Friday which may create buoyancy in stocks. The EOM is Saturday.

The bad news is that the chart indicators on the SPX weekly chart are weak and bleak wanting to see lower lows in price moving forward on the weekly basis. It means more pain is ahead for all of you long the stock market. In the near-term, however, stocks will likely bounce as possie d sets up in the daily time frame but after a few-day rally, stock prices will roll over and die again to honor the weakness on the weekly basis going forward. In technical trading, you are playing multi-dimensional chess and the dimensions are the time frames (minutes, hours, days, weeks, months, quarters, years).

If you go long the stock market, you need to watch the BPSPX to see if it prints a six percentage-point reversal to the upside to confirm you are correct. If stocks rally but the BPSPX does not reverse by 6 points, the trade will reverse and stocks will fall again since the BPSPX would not have blessed the rally.

On trading, you can use the possie d in the daily time frame to time the bottom in the SPX this week and play it with a quickie long but do not marry the position since the SPX weekly chart remains weak and bleak. On the weekly basis going forward, the short side is a better place to be so the assumption is that the BPSPX will likely move down to 35 or lower before she wants to reverse with a strong rally (as compared to the coming rally on the daily basis that will not last too long probably only for a few days). 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 9/28/23, Thursday Morning, at 5:19 AM EST: BPSPX collapses to 38 so it is in the neighborhood now where a reversal would be on the table. If stocks rally, the BPSPX would need to tag 44 (38+6) in the days ahead to confirm the relief rally.

Note Added 10/2/23, Monday Morning, at 3:57 AM EST: The BPSPX drops to 36 so a pop in stocks would be expected. 6+36 = 42 so a move up to 42 would confirm that a rally would be substantive. If stocks rally a few days but the BPSPX does not move above 42, the SPX will likely roll over and drop again to print another low.