I've been showing the bullish percent charts from time to time, which started looking quite toppy and then began to roll over some days ago. The Nasdaq was stronger, not surprisingly, but even its bullish percent (measured according to how many components have bullish vs. bearish point and figure charts) has made a lower high. Unlike the bullish percent charts for the SPX and NYSE (NYA), it hasn't made a lower low - yet. But when you look at the indicators on the charts for all three, they are showing weakness and rolling over. Below is a chart of the BPSPX on which I superimposed the BPNDX and then the BPNYA (to save a bit of space, and make it easier to see all three conveniently).I thought it might be fun to pull up a point and figure chart of the BPSPX itself! So that's showing at right (click image to see it larger). Interestingly, it registered a bearish alert a couple of days ago, June 17.
These charts do not guarantee that the markets roll over to new lows, instead of playing out the alternative idea of a pullback followed by another rally leg up. But the heights they already had reached were comparable to those reached at similar important peaks that rolled over to new lows in this bear market. And the StochRSI indicator has pulled down to the level where, more often than not, the bullish percent rolled down much lower. This certainly looks like a bearish warning.


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