The following is another update to the current 'Chart In Focus,' which of course was initiated this Tuesday.
S&P-500, Dow Industrials, Nasdaq-100 Indices with Bollinger Bands
This has to be one of the most unique periods we've come across. For prices to move from the upper band to the lower band and back to the upper band in the space of 5 days, as NDX (bottom most pane on chart) has, is something we cannot recall having seen on a major index previously; at least not in recent memory.
Now it's not that there have been massive moves on the indices; far from it. It is just that volatility levels on the minor trend have tightened so much as to have caused the bands to virtually be sitting atop each other. Okay, perhaps that is an exaggeration, but you get the gist.
In any case, pondering the uniqueness of these developments isn't of much worth. What is worth keeping an eye on, however, is the development of the bands over the coming sessions. Just because prices, have moved above the 20dMAs today, doesn't mean that the bulls are back in business.
The bottom line is that the bollinger bands need to start to expand, before a new trend can begin. So until that happens, this chart will continue to be our current "Chart In Focus." Oh yeah, when we first debuted this chart, our "focus" was primarily on the lower band, but given developments both bands are now of interest.
Thursday, March 11, 2010 at 03:30PM | 
NDX Breaks Intermediate Resistance
The Nasdaq-100 Index joined the Russell-2000 and the Nasdaq Composite, in having broken the intermediate highs that were put in place on the index in January. Assuming that these levels are maintained, the index should now have a clear path to the 1940-level, which is the target derived from the bull flag that was broken, last week.