Bullish Percent Index (BPI), BPCOMPQ, BPSPX, BPNYA

Overview:

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 50 and especially 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%.

However, the direction of the BPIs are the most important:: The direction of the BPI is directly proportional to the market direction, i.e. when the direction of the BPI is up, so is the market, and vice versa. Therefore, use trend reversals to indicate subsequent reversals in market trends. Useful ways to accomplish are to use moving average crossovers, Parabolic Sar, postiive divergence in the MACD, and level of Stochastics.

NASDAQ - BPCOMPQ
Short Term Uses Parabolic SAR to identify changes in direction.
Also look for positive or negative divergence in the MACD as well as important Stochastics levels of 20 and 80
Long Term Daily Uses 20 EMA to identify changes in direction.
Also look for positive or negative divergence in the MACD as well as important Stochastics levels of 20 and 80
Long Term Weekly Weekly chart: Uses Parabolic SAR to identify changes in direction

S&P 50 - BPSPX
Short Term Uses Parabolic SAR to identify changes in direction. Also look for positive or negative divergence in the MACD as well as important Stochastics levels of 20 and 80
Long Term Daily Uses 20 day EMA to identify changes in direction. Also look for positive or negative divergence in the MACD as well as important Stochastics levels of 20 and 80
Long Term Weekly Weekly chart: Uses Parabolic SAR to identify changes in direction

http://breakpointtrades.com/indicator_bullish.htm