black friday approaching in usa tonight, page-158

I ask today "Did McHugh get a little overexcited with his call ??". We have broken to the downside on all the triangles and I have no doubt that in time we will go on with it but here's the thing.....Indices as a rule do not like to venture too far or for too long outside the bollinger band. In fact on the weekly a touch of the bands extremities can often signal a change in direction. The May rally was a perfect example. After running neatly along the bottom of the band for several weeks the rally began and ended when the DOW very neatly touched the upper edge.

The crash of 2 weeks ago saw the DOW fall well outside the band....since then the DOW and SPX have been marking time sideways as the bolly heads down to catch up. We may need to mark time for a couple more weeks yet. I suggest that we may retest the bottom of the triangles....we may even re enter them and otherwise buggarize around but this will be all just marking for the weekly bolly to catch up before the next big fall.