Using the BPI Indicator for Stock Trading provides good signals as to the state of the market. The bullish percentage indicator (BPI) compares the percentage of stocks that have generated buy signals compared with the total number of stocks in a given index.

You can check out the various BPI indexes here:-

http://stockcharts.com/symsearch/index.html?$BP

What it means:-

Bull alert: When the BPI is less than 30% and changes direction.

Bull confirmed: When the BPI forms a higher high.

Bear alert: When the BPI is above 70% and changes direction.

Bear confirmed: When the BPI forms a lower low.

Todd B

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