Recall the discussion yesterday afternoon about the Bollinger Bands on the SPY 30-minute timeframe.
Below, on an updated zoomed-out view since the 11/16 correction lows, you can see each time the market became short-term frothy with a pop above the upper BB on this timeframe, the condition was worked off by grinding sideways before the rally resumed. Thus far this morning, that character is continuing.
I am still looking at the middle BB (20 period moving average, or orange line) to act as a critical reference point for bulls if this rally is going to sustain itself above the 1420’s on the S&P 500 Index.
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