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 | 
Nasdaq-100 Bull Flag Target Accomplished
The Nasdaq-100 formed a bull flag in the first week or March and broke out of that flag later that week. The flagpole had measured 80 points. Projecting that distance from the breakout point of 1860, a target of 1940 was derived.
The target of 1940 has been met today, just two weeks later. Now, with the index showing overbought levels on the momentum indicators and showing other signs of resistance (see commentary pieces in Members Area for more on the topic), the big question now is whether a top is nigh or higher levels are forthcoming...