Bollinger Bands weekly
The S&P 500 is locked in a 100 point trading range (2040-2140) since March because of a serious split in sector performance. At less than 5% this is the narrowest range in several years. Note that Bollinger Bandwidth on the weekly chart reached a 20+ year low in July. This means the Bollinger Bands are at their narrowest in over 20 years. How's that for a contraction. John Bollinger theorized that a volatility expansion often follows a volatility contraction. Chartists, therefore, should prepare for significant move in the coming weeks or months.
The upper and lower bands mark the first levels to watch for a directional clue. With the index hitting 52-week highs in February, May and July, the overall trend is up and this favors further upside. I would use the lower Bollinger Band and March-July lows to mark key support in the 2040-2060 area. A weekly close below 2040 would show enough selling pressure to forge a support break and suggest a trend change.
I post my updates on my Twitter profile first.
You can see my 2 latest updates on the SP500 by following this links:
Bearish: twitter.com/BLawrenc...s/626874602338287621
Bullish: twitter.com/BLawrenc...s/626915564250886144
TWUC
@BLawrenceM
Come join me at @BLawrenceM
Best to your trading!
Music at work: Hans Zimmer Thin Red Line:
www.youtube.com/watch?v=EU2W49eS...
open.spotify.com/tra...EaSFMIrDeMxM9bY06EQf
Courtesy Arthur Hill
The S&P 500 is locked in a 100 point trading range (2040-2140) since March because of a serious split in sector performance. At less than 5% this is the narrowest range in several years. Note that Bollinger Bandwidth on the weekly chart reached a 20+ year low in July. This means the Bollinger Bands are at their narrowest in over 20 years. How's that for a contraction. John Bollinger theorized that a volatility expansion often follows a volatility contraction. Chartists, therefore, should prepare for significant move in the coming weeks or months.
The upper and lower bands mark the first levels to watch for a directional clue. With the index hitting 52-week highs in February, May and July, the overall trend is up and this favors further upside. I would use the lower Bollinger Band and March-July lows to mark key support in the 2040-2060 area. A weekly close below 2040 would show enough selling pressure to forge a support break and suggest a trend change.
I post my updates on my Twitter profile first.
You can see my 2 latest updates on the SP500 by following this links:
Bearish: twitter.com/BLawrenc...s/626874602338287621
Bullish: twitter.com/BLawrenc...s/626915564250886144
TWUC
@BLawrenceM
Come join me at @BLawrenceM
Best to your trading!
Music at work: Hans Zimmer Thin Red Line:
www.youtube.com/watch?v=EU2W49eS...
open.spotify.com/tra...EaSFMIrDeMxM9bY06EQf
Courtesy Arthur Hill