BPSPX S&P 500 Bullish Percent Index Daily Chart

The BPSPX, SPXA150R, CPC and CPCE put/call ratios, and most importantly, positive divergence on the SPX hourly and daily charts, announce a stock market bottom at hand. Keystone covered about 80% of the index shorts and flipped those positions long at the opening bell yesterday. The charts could have been posted but there is no point to it since the blogs are not supported well enough considering the tens of thousands viewers each day.

Remember the previous BPSPX post, Keystone told you to watch for a six percentage-point reversal to the upside to confirm a potential stock market bottom. You're still watching. However, a drop to 28 is bigtime. That is way down in the cellar so the BPSPX is right at, or very near, its bottom. From the current 28, a 6-point up move is 34 to confirm a stock market relief rally.

The bulls were in full control in June and July. The move above the 70 level kicked-in the afterburners sending the SPX skyward but alas, there is always a night after a day, a yin and a yang, so the BPSPX tops out at 80. A 6-point reversal is 74 and that occurs in August issuing a market sell signal.

The BPSPX then loses the 70 level for a double-whammy sell signal. The bulls try to save the day in late August and stage a 5 percentage-point reversal, from 53 to 58, but five is not six and the BPSPX ran out of gas collapsing lower.

The BPSPX is consistent where you would expect a bottom to occur. Ditto the SPXA150R. These, along with the other metrics, helped call the Friday bottom. Markets remain choppy and erratic and if Fed Chairman Powell coughs it will move markets.

If the BPSPX crosses above 34, that is a market buy signal and above 35 would be a double-whammy buy signal.

Putting the happy talk aside, note that the SPX weekly chart remains weak and bleak. Thus, the relief rally will likely be short-lived (a few days maybe week or two). The SPX weekly chart will reexert its negativity and it wants lower lows with the SPX price on the weekly basis going forward.

Congress is a mess with the House leaderless giving Speaker McCarthy the boot. There may be a vote mid-week for a new speaker and if that fails, fear and panic may return in force since the House will be a complete mess.

The House republicans display incompetence when in the last election, aside from the abortion issue, the 'glaring theme of those elected was competence'. Americans are sick of the republocrat and demopublican filth and scum and simply want to 'elect responsible capable competent managers to office'. It is not rocket science, and Keystone knows rocket science.

The Jordan character wants the House speaker job but he is Trump's boot-licker and puppet and comically, the orange head provides an endorsement for Jordan; it is the kiss of death. Jordan should have told Trump to keep his mouth shut. The endorsement guarantees that not one single democrat will vote for Jordan.

In addition, it sets up the moderate republicans in the House to be little b*tches and buckle under to the whims of King Donnie and the right wing of the party, and vote for Jordan. That is probably not going to happen. The interim speaker Patrick McHenry will likely end up the speaker until the November 2024 election. Channeling Patrick Henry, Patrick McHenry will proclaim, "Give me the House speakership, or give me death!"

It is obnoxious inconsequential political theater since the United States is already gonzo; you're watching the demise of America's corrupt crony capitalism system and living world history in real-time. 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 10/12/23, Thursday Morning, at 7:14 AM EST: BPSPX tags 35.20 a six percentage-point reversal and above the 35 line receiving a double-whammy stock market buy signal.