ES And SPY: Broke Their Lower Bollinger Bands On Dip

Published 03/11/2015, 02:06 AM

ES and (ARCA:SPY) have both fallen through their lower Bollinger Bands.

There’s the same set of formations on the short-term charts as we saw during the dip of December 5th through December 16th and also the dip into the October 15th low. Both were ES rollover situations. Both dips broke the lower Bollinger Band® for a few days before taking off into a melt-up.

My chart formations strongly favor a coming melt-up. There’s a rising wedge bottom a little below on the ES and SPY daily charts. I’ll report on the SPY put-call ratio when it’s available. We’re heading into the Wednesday before opex week. Every day now that will be a stronger and stronger short-term indicator, though not as strong as it will be next week.

We also have the FOMC meeting next week.

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