Harry, the BP Indices tend to be lagging indicators. It is generally considered a very good sign for those bullish to see a reversal at 30 (or below). BPNDX actually hit a low of 1 about 5 years back. Then look for a reversal on the BPNDX of 6% or more. But you need to look for other positive divergences. I follow all the BP Indices but they will not update until a couple hours after the close. The best thing about the selling today if you're bullish is the volume has not been all that high. That could mean more just a lack of buyers.
Sector Bullish Percentages: BP Consumer Discretionary, BP Transports, BP Industrials, BP Materials, BP Information Technology etc. The Early Recovery Movers:
The Bullish Percent Index (BPI) is a popular market breadth indicator that is calculated by dividing the number of stocks in a given group (an exchange, an industry, etc.) that are currently trading with Point and Figure buy signals, by the total number of stocks in that group. Bullish Percent levels that are above 70% are considered overbought, whereas levels below 30% are considered oversold. Strong buy signals occur when the Bullish Percent Index falls below 30% and then reverses up by at least 6%. Conversely, promising sell signals occur when it goes above 70%, and then reverses down by at least 6%:
Mid Cycle Movers:
BP Telecom Services Sector, BP Healthcare, BP Utilities and BP Financials - Late cycle movers after the market top is in.
The Bullish Percent Index (BPI) is a popular market breadth indicator that is calculated by dividing the number of stocks in a given group (an exchange, an industry, etc.) that are currently trading with Point and Figure buy signals, by the total number of stocks in that group. Bullish Percent levels that are above 70% are considered overbought, whereas levels below 30% are considered oversold. Strong buy signals occur when the Bullish Percent Index falls below 30% and then reverses up by at least 6%. Conversely, promising sell signals occur when it goes above 70%, and then reverses down by at least 6%:
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