Securities Research Services

Friday, October 03, 2008

Weekly Bollinger Band

During the last bear market the SPY closed the week out below the lower weekly Bollinger Band three times. Following each time this occured the market turned higher into a multi week rally.

This bear market has now seen its second weekly close below the weekly Bollinger Band. The first time this occured was Friday, January 18. Monday, January 21 the SPY gapped lower at the open, but buyers stepped in immediately and they didn't quit until the SPY had rallied all the way from $129 to over $135.

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