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.
Market Update
The holiday season is in full swing and, although it's business as usual in the Members' Area of our site, we've gotten caught up in the festivities and slacked off a bit on the blog. We'll be back to normal programming - providing a handful of articles every week - on the blog soon after the New Year begins. In the meantime, here's a quick update on the state of the markets, as covered in last night's commentary that was provided to members...
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