Sunday, December 4, 2016
Joined Nov 11, 2007
1,458 Blog Posts

3 Higher Closes Above the Upper Bollinger Band: WTF?

$SPY has completed 3 higher closes above its upper Bollinger Band.

I have authored a fair amount of studies about what happens when the S&P 500 closes above its upper Bollinger Band (50, 2). One can read most of those articles under this category: Abnormal Markets.

I have not, however, completed a study where I examined what happens after 3 higher closes above the upper Bollinger Band. And, sorry for the tease, but I will not publish such a study tonight. I’m guessing that there are not very many instances of this happening and that the study will not be generalizable.

But the real reason is that I turn 40 very soon and the celebrations began (somewhat unexpectedly) tonight.

Likely tomorrow I will examine what happens after this probably rare occurrence of 3 higher closes above the upper Bollinger Bands. Until then, one thing I can say for sure is that an abnormal market is abnormal, even when it is making you money.


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  1. DJMarcus

    happy bday wood

  2. Jeremy

    Happy birthday, Wood

  3. Bozo on a bus

    Happy birthday, whenever it is 🙂
    Can’t wait to see the results of the study. I am having visions of 1987; straight up until it crashes.

    • Woodshedder

      Well I’m officially 40 now. And so I guess I’m officially in a downtrend? Forever? That’s deep.

      Anyway, I’m looking forward to the study as well. Just couldn’t get it done tonight.

      Cheers my friend!

  4. FryGuy

    Happy bday Wood! 40 is the new 30. Let the good times roll!

  5. fake amish

    Have a good one man. 40 is just a number like them all.

  6. Lars Bech

    Happy Birthday, Wood whenever you reach the 40th year ! Best wishes in future from Denmark

  7. M

    Happy birthday wood! or should I call you Mr. Shedder now?

  8. experquisite

    Good day to have a birthday — mine also, just (!) 37 though. Happy birthday!

  9. Joe

    Happy b-day. Above 40, things just keep getting better. Just ask me -42. 😉

  10. Sooz

    A very Happy you, Wood!

    Here’s a special wish that your children will like..Celebrate!!!

  11. lol

    I have to believe that the times I can think of stock indices moving so significant that they may have had 3 closes above bollinger band were times like in the major secular bull markets of the 80s and the nasdaq in the 90s but also near the peaks or before pauses before a major rally resumed. Still, I also feel volatility may have the potential to really spike any time on us even if the rally is going to resume.

  12. DaveinPhilly

    Happy Birthday! You still got 10 years until the big Five-Oh, so enjoy the next 10 years!

  13. Woodshedder

    Wow. Make it 4 higher closes.

  14. Redshark

    Happy Birthday!

  15. fasteddie

    Happy Birthday Shed!!! Hope you enjoy your special day with the family. We are all getting closer to Fly’s age of exclusion!

  16. cheesetrader

    Happy 40 Wood!

  17. Mr. Cain Thaler
    Mr. Cain Thaler

    Happy belated birthday