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SPY, QQQ & IWM Analysis

Member @stock51 requested the weekly charts of SPY & QQQ after I had posted the following charts of IWM in the trading room. The following are the daily (spanning 2-years) and weekly (10-years) charts of all three along with a 21-year chart of the Russell 2000 Small-cap index highlight the most extreme pinch in the Bollinger Bands for at least the last two decades & possibly ever.

Typically, powerful trends follow tight contractions in the Bollinger Bands & although the breakout & subsequent trend following such contractions can go either way, by nearly all metrics that I track using technical analysis indicate that the next major trend following this usually tight (5½% from top to bottom) and long (5.6 months) sideways trading range in the small caps is most likely to resolve to the downside.

$RUT 21 yr weekly BB Width

$RUT 21 yr weekly BB Width

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May 24, 2017 2:26pm|Categories: Equity Market Analysis|Tags: , , , , , |3 Comments

3 Comments

  1. stock51 May 24, 2017 2:30 pm at 2:30 pm

    thank you

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  2. Shambo May 24, 2017 8:44 pm at 8:44 pm

    good post Randy, thanks. Interesting about the BBs on the Russell.

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  3. snp May 25, 2017 1:40 am at 1:40 am

    last time i saw bollinger bands pinch a russell like that was jane russell in the 1950’s

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