The View; Below The Lower Bollinger Band

Here are some of the things that stand out to me from The View;

  • $COMPQ, $NDX, $SPY, $IWM, $DIA, and all the offensive sectors in the SP500 are trading below their 10 day and 20 day moving averages.  Like I said yesterday, anytime the major indices are trading below their 20 day I tend to do less swing trades in individual common stocks.
  • The $NDX $QQQ closed below its 50 day moving average, it needs to get back above it pronto, big yellow flag.
  • IBD’s current market outlook is Uptrend Under Pressure and the $NYSE leads the way with 7 distribution days.
  • The $VIX is now trading above its upper bollinger band,  it tends to revert.
  • The massive amount of ETF’S below their lower bollinger band.  Normally I would view this as bullish in the very short term 1-3 days and it is, but it tells me two things; 1. The sell off was very intense even though percentage wise it was peanuts and 2.  the grind higher over the last month made the indices/etf’s so tight (no volatility) that all it took was a small move to take a lot of the  etf’s below their lower bollinger band.
  • Telechart’s McClellan Oscillator closed at -200, considered most of the time as an oversold reading.
  • In the $SMH 0% of the stocks within the etf are above their 10 day ma, $EEM only 2% are above their 10 day ma, $GDX only 4% are above their 10 day and 50 day.  If one is looking for a bounce I would look at these names along with every ETF that is trading below their lower bollinger band.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus