SPX Daily Chart Tight Bollinger Bands Signal Large Move On Tap

The Bolllinger Bands (Registered Trademark; reference John Bollinger's site below) are tightening to a constriction not seen in months. The BB squeeze will create a large move in one direction or the other. It appeared the bears were in the drivers seat until the reversal yesterday. The move can easily be 20 handles or more. If the tight BB's squeeze out an upside thrust, the SPX will move to the 1580's establishing new all-time highs. If the bears regain their footing, which has to be today, the 1530's are on tap. A move higher today with the markets will give the nod to the bulls for a strong run higher over the coming days. Today is an important day. Watch the center BB, which is also the 20-day MA, at 1558, to gauge who has the advantage as the day moves along, bulls win above 1558, bears win below 1558.

An upside thrust will inflict serious bear pain and cause a strong short squeeze sending the SPX easily into the 1570's and 1580's. The bears need to bring their A game today. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

For further information on Bollinger Bands, a registered trademark, reference John's site at;

Bollinger Bands