VOLATILITY IS COMING

HOW STRETCHED IS THE SPX PRICE?

The chart below is the SPX daily with a Bollinger Band array set to the 200-DMA, with the deviation bands set to 1.0, 1.5, 2.0 (standard), 2.5 and 3.0.

 

Link to larger chart:  Link

 

 

Note how in January 2018 the price was so stretched above the 200-DMA that it nearly reached the 3.0 deviation band.

Once the price broke, it took only 9 trading days (TD) for the price to drop back down to the 200-DMA line.

  • In March 2018, while not as stretched, the price took only 8-TD to return to the 200-DMA.
  • In October 2018 it took 6-TD
  • In May 2019 it took 19-TD
  • In July 2019 it took 6-TD
  • In September 2019 it took 10-TD

The SPX price is more stretched above its 200-DMA than it has been in about 2-years, and I’m looking for a similar reversion to the means as 2-years ago.

VOLATILITY IS COMING

The chart below is the SPX daily with the same 200-DMA BB setup as above, going back 5-years, but without the array, showing a feature of John Bollinger’s creation, how the BBs open up when increased volatility is coming – it’s coming – are you ready?

The numbers at the lines are showing the span of the BBs… the bands will likely expand a bit farther over the coming days.

 

Link to larger chart:  Link 

5 thoughts on “VOLATILITY IS COMING

  1. I do agree with all of the ideas you’ve introduced for your post.

    They’re really convincing and can definitely work. Nonetheless, the
    posts are very short for beginners. May you please prolong them a bit from subsequent time?
    Thank you for the post.

    1. Brevity is the soul of wit (William Shakespeare_… This article did not need any more or any less than I gave it.

  2. Hey would you mind letting me know which web host you’re utilizing?

    I’ve loaded your blog in 3 different browsers and
    I must say this blog loads a lot faster then most. Can you recommend a good internet hosting provider
    at a honest price? Thanks, I appreciate it!

Leave a Reply

Your email address will not be published. Required fields are marked *