SPX Bullish Percent Index - Sell Signal. 26/1/2011

The Bullish Percent Indices are breadth indicators. The BP Index is based on the percent of stocks giving "buy" signals on Point and Figure Charts.

Note the following on the above chart:

• Chart has broken below the 10-Day Moving Average
• RSI.9 is below its mid-line.
• CCI.30 has broken down below the 100 level.

Recently I've been banging on about breadth on the Australian market (the Small Ordinaries and the All Ordinaries Index) and how the XSO was weakening in relation to the XAO.

Well - we've now got strong evidence that breadth is weakening in the American market as measured by the S&P500.

I feel like that guy in the long gown and beard with a sign "The End is Nigh." :)

Good luck

Red