Days before the Brexit vote we correctly foretold a large move was coming to the markets based on the Bollinger Bands (squeeze) on the daily charts.
Now that the markets are pretty much back to the same levels from when we published our insights, another Bollinger Band squeeze is setting up. This simply means: Another large move is coming.
However, this time it is on the weekly charts, thus the move will be longer and larger than what the daily charts foretold us.
Below we show the NASDAQ Composite. Note how price found support at the lower red trendline and is now butting heads against the intersection with the pink and green trendline.
Price did move back above the 20w SMA, which is also pointing up; both are signs of a bullish start, but price needs to regain $4900 first (red dotted horizontal line; important support/resistance).
If this move is up, and so far all the signals we follow (market breadth, buy/sell signals, etc) do suggest it is, then we are looking at a multi-week rally once price breaks above $4900 and ideally $5000. It should then target $5300 for starters.
IF the bears take charge somehow then watch out below, as $4150-$3900 (lower trendlines support) will then be next.