new charts , page-85

Yes a surprise performance on the DOW for mine.

Rarely does the DOW push out side of it's Bollinger bands by much. These bands are an outcome of both volume and price. So with high volume it will move with respect to price closer. And more relevant to now: -> When volume is not convincing we see prices push past the bands.

On Thursday we were above the bands by 0.5% and now we are a whole 1.4% outside. Bollinger bands will expand and play catch up as they are trying to do, but the rise is out pacing them due to weak volumes not justifying the rise.

Even when news items put a rocket under prices, we eventually see the equilibrium does return and prices come back within the bands as they come together.

So we are seeing over exuberance, a dead cat bounce or a short covering rally.... or a bit of all three.

I went back 3 years on the DOW and only found 2 other instances where the price went convincing above the bands. And they were not by much.... See chart...



I then went back 5 years and found it hard to spot anything similar. See chart. I actually had to go back 9 years to see a time where prices expanded so quickly that the bollingers couldn't catch up in time.



My gut tells me to rebuy SDL on open, but my charting tells me this rally has been a bit too much and will pull back a little short term. We'll see....