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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (40929)	11/28/2012 9:51:00 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 218637

It's only interesting from my perspective due to the "pinching" of the Bollinger Bands (bending inward) which suggests volatility may be dropping off in anticipation of a larger move that may result in a major downtrend.... OR... it may result in a period of consolidation in advance of a major move that flares the Bollinger Bands outward and leads to new highs. We can see how this happened in 2005 on that chart. Consolidation and the upper band moved towards the index price before the uptrend resumed in a mild "breakout" from 1300 to nearly 1600. But then we can look at 2008 and see what happened.. The SPX penetrated below the Lower BB, and only round after round of QE and Fiscal stimulus turned the markets higher to the point they are today.. Either way, history indicates that the closer we get to that upper Bollinger Band, the more downside risk there is until the BB turns outward. And news wise, it's going to require something extraordinary to flare those BBs again. The question will be if we sit around this point as that Upper BB trends towards the index price, or does the index price rise to meet it. Either way, it's a good means of tracking if we're getting close to a top (or a bottom) in the SPX.. It will be interesting to observe over 2013. Hawk