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My Bollinger Bands® Work on SPX is Warning for Bulls


FYI-- after making a new all-time high at 1883.97 last Friday, which we note touched the upper Bollinger Bands line, the cash S&P 500 (SPX) has reversed and plunged to an intraday low at 1849.69, so far.

More importantly, from a near-term perspective, the SPX has violated its flattening 20-DMA-- a "condition" that usually means the price structure is traversing its band width from high to low towards a test of the lower BBand, now in the vicinity of 1830.

From a Bollinger Bands perspective, the SPX will have to claw its way back above the 20-DMA, and close above it to neutralize the implications of today's negative action.

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