Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Point & Go Figure: NYSE Bullish Percent Bearish Catapult


More songs about buildings and foods!


Don't you miss it, don't you miss it.
Some a you people just about missed it!
Last time to make plans!
-Talking Heads "Remain in Light"


Recently on the Buzz and Banter you mentioned a "bearish catapult" pattern on the NYSE Bullish Percent. Your interpretation carries serious implications since the "bearish catapult" pattern is supposedly a powerful sell signal, yet I've read where another "talking head" says patterns are insignificant with this indicator. What's your take?

Minyan Eric

ME -

The reality is that no one knows. There has not been a prior bearish catapult pattern in the NYSE BP going back to 1955, and in general, because it is a 0-100% breadth indicator, patterns do not typically develop.

A bearish catapult on a price trend chart says something important about the power of the bearish conditions that create it. A bullish percent chart is not a price trend chart, but my interpretation is that the pattern does say something important about the seriousness of the deterioration in breadth we have seen and the subsequent risk aversion now entering the market. Beyond that, whether one calls it a "bearish catapult" or assigns some other arbitrary risk nomenclature to it, is anyone's guess.

As you know, I use PnF with a number of other indicators, DeMark price exhaustion techniques for example. (That's just the way I approach markets, and I wouldn't be arrogant enough to state that the way I approach markets is better than any other approach; a whole lot of people make a whole lot of money using a whole lot of other methodologies.) A wide variety of other methodologies are all painting the same negative long-term technical picture as the NYSE Bullish Percent, suggesting this is indeed a special time for financial markets. But perhaps the alignment is simply coincidental.

Regardless, I use PnF indicators only for very basic contextual guidance, so while the pattern is interesting it does not materially affect how I trade, say, the S&P E-Minis, for example, the way DeMark price exhaustion techniques do.

NYSE Bullish Percent
(Chart courtsy

< Previous
  • 1
Next >
Position in ES/U6

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos