This trading range just won’t break. The NASDAQ and S&P dropped quickly to their lower Bollinger Bands in the morning and bounced right off of those bands. The action made hammer-like patterns on many charts, which I normally take as a very bullish sign. But I’m not very impressed with these patterns because volume wasn’t strong enough. In fact volume was lower than Friday’s levels on the S&P 500 and Dow. So after the round trip moves today the S&P is still sitting just below its 50 day moving average and the NASDAQ is right on its 4 month long trendline. I’ll keep waiting for this range to break (on a closing basis) before making any moves.
