The first test of the middle Bollinger Band, or 20-day moving average on the S&P 500 Index, has been for for about five points today off the highs.
It is nothing too dramatic or bearish yet, by any stretch, but we are seeing some price sensitivity to Bollinger Band analysis, with the recent punch of the lower Band leading to a middle Band test today.
The issue I see is the holiday week and accompanying action. The feel is one of a grinding, drifting market. To be bearish again, I would have preferred to have seen an exuberant, fast rally today which then sharply rolled over. I am still likely going to lay off the action until early-next week, given my recent string of wins and avoiding drawdowns.
Keep an eye on that 1858 level now.
What are you trading this afternoon?
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i took spy puts earlier for that reason.
Nice entry.
XIV long, letting the VIX melt away and capture gains without long index exposure (hedge against etf shorts)
eggvocado, I love making those