Hello Flashy,
Jan's probably cleaning her rugs (new dog) so I'll ease through a Bullish % Index with you.
Since you asked about the Bullish % Index for Autos & Parts, let's pull that little jewel up on the screen. OK, let's go to ohooooooo, say 1992. This chart doesn't have a lot of pizzazz, but it'll do.
(Remember, to go from one column to another, it takes a 3-box minimum reversal. On Bullish % charts that means three levels of 2% each for a total of 6%. Let's assume that every reversal initially started with just a 3-box reversal, and I'll make the first call in a column from that spot, and go from there.)
See the column of X's in 1992 that start at 42? OK, here we go.
1. This 3-box reversal from the preceding column of O's, going from 42 to 46 (6%), initially established a Bear Correction. (BEAR CORRECTION: Occurs when a column of O's in a Bear Confirmed risk status reverses up to a column of X's, and does not move above the previous column of X's.) When the X's reached 56, it established a Bull Confirmed, and then rose to the 72% level. (BULL CONFIRMED: Occurs when a column of X's moves above the previous column of X's.)
2. Reversed down to a column of O's, establishing a Bear Alert, and subsequently dropped to 52. (BEAR ALERT: Occurs when a column of X's in Bull Confirmed risk status moves to the 70% level or higher, and then reverses down to a column of O's that drop to the 68% level or lower, and does not move below the previous column of O's.)
3. Reversed up to a column of X's, re-establishing the Bull Confirmed, and subsequently rose to 72.
4. Reversed down to a column of O's establishing a Bear Alert, and subsequently dropped to 50, where it became a Bear Confirmed, and then continued down to 36. (BEAR CONFIRMED: Occurs when a column of O's moves below the previous column of O's.)
5. Reversed up to a column of X's, establishing a Bear Correction, and subsequently rose to 46. (BEAR CORRECTION: Occurs when a column of O's in a Bear Confirmed risk status reverses up to a column of X's, and does not move above the previous column of X's.)
6. Reversed down to a column of O's re-establishing the Bear Confirmed, and subsequently dropped to 30 (Cool).
7. Reversed up to a column of X's, establishing a Bull Alert (Yes!), and subsequently rose to 48, where it became Bull Confirmed, and then rallied up to 60. (BULL ALERT: Occurs when a column of O's in Bear Confirmed risk status drops to the 30% level or lower, and then reverses up to a column of X's and does not move above the previous column of X's.)
8. Reversed down to a column of O's, establishing a Bull Correction, and fell to 36.
9. Reversed back up to a column of X's and re-established the Bull Confirmed status, and rose to 68.
10. Reversed down to Bull Correction and fell to 52.
11. Reversed up just 3 boxes and re-established the Bull Confirmed.
12. Reversed down in O's to 52, signaling a Bull Correction but at 50, it became Bear Confirmed, and subsequently dropped to 44.
13. Reversed up in X's and established Bear Correction until it hit 60, at which time it became Bull Confirmed, and rose to 72.
14. Reversed down just 3 boxes, but that's good enough for a Bear Alert.
15. Reversed back up and re-established the Bull Confirmed and rose to 78.
16. Reversed down to Bull Correction until it hit 68, and became Bear Alert, and then at 64 it became Bear Confirmed, and dropped to 44.
17. Reversed up to Bear Correction and rose to 64.
18. AND FINALLY, reversed back down to Bear Confirmed.
There you go Dude. It's a bit late, and I'm sure that I've probably made some mistakes. But, I know a fellow P&Fer will step in and correct it. Bullish % Indexes bring light to the otherwise dark passages of market madness. Surrender is peace.
I recently rambled about them at www3.techstocks.com
Hope this helped.
Take care,
Eric
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