Thursday, January 19, 2012 at 07:50PM | Asher Pinto
Potentially troublesome development for the bulls. Upper Bollinger bands fall into SPX, INDU.
S&P-500 Large Cap Index
SPX gained 6pts (0.5%), today. However, in a potentially significant development, the upper Bollinger band has started to fall, today, and in fact the index has smashed right up against the falling band. Unless the band somehow starts to rise tomorrow (that would probably take an exceptionally strong up-day), there is a reasonably decent possibility that minor resistance will be found and perhaps a minor peak form, at these levels.
Dow Jones Industrial Average
INDU closed with a gain of 45pts (0.4%). And, as is the case with the S&P-500, this index has also smashed into its upper Bollinger band, which has begun falling, today.
Nasdaq-100 Index
NDX gained 19pts (0.7%). Unlike the other indices, this index is not confronted with a falling upper Bollinger band. In fact, the upper band has risen further, after today's gains. RSI has moved into overbought territory, but that isn't necessarily a problem for the bulls just as yet. It will be interesting to see if this index can continue to rally, if the others get bogged down, courtesy their upper Bollinger bands...
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« Market Update: Jan 19, '12 »
Potentially troublesome development for the bulls. Upper Bollinger bands fall into SPX, INDU.
S&P-500 Large Cap Index
SPX gained 6pts (0.5%), today. However, in a potentially significant development, the upper Bollinger band has started to fall, today, and in fact the index has smashed right up against the falling band. Unless the band somehow starts to rise tomorrow (that would probably take an exceptionally strong up-day), there is a reasonably decent possibility that minor resistance will be found and perhaps a minor peak form, at these levels.
Dow Jones Industrial Average
INDU closed with a gain of 45pts (0.4%). And, as is the case with the S&P-500, this index has also smashed into its upper Bollinger band, which has begun falling, today.
Nasdaq-100 Index
NDX gained 19pts (0.7%). Unlike the other indices, this index is not confronted with a falling upper Bollinger band. In fact, the upper band has risen further, after today's gains. RSI has moved into overbought territory, but that isn't necessarily a problem for the bulls just as yet. It will be interesting to see if this index can continue to rally, if the others get bogged down, courtesy their upper Bollinger bands...
FREE Stock Picks
For the next several months, we will be providing FREE stock picks and options picks at our public listing at stockcharts.com. Please check out the same and also show us your support by voting for us (Click the "Vote Best Public Chart List" at the bottom right of page) - http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2295600