Bullish Percentage Index (BPSPX)If the BPI exceeds everything, it is good; above 65 will indicate a correction and a dip-buying opportunity; below 65 indicates a more serious correction is coming. Finally, if the signal drops to 25, this indicates a short-term bottom. The current chart shows a future correction, especially if it breaks out of our blue lower trend line.
Put Call Ratio (PCR)
If the put-call ratio is above one, then investors are protecting their assets from downside risk. If the ratio continues to rise it is more pessimistic, and this is a signal of a market bottom. As the ratio begins to drop, investors are more complacent and may eventually become overly optimistic.