SPY – Compression on the Intraday Charts Suggest a Volatile Move Ahead

By | May 23, 2016

The market traded in a narrow range all day continuing a pattern that began in the last half of Friday’s session. The thirty minute chart shows the contracting ribbon of Bollinger bands and the Bollinger bandwidth indicator at the bottom of the chart, which is at a level not seen since late April and which was followed by a volatile two days.

1000133.Bollinger bandwidth 30

1000133.Bollinger bandwidth 10

The ten minute chart highlights the channel pattern the SPY has been moving in and a break above or below the boundaries could be followed by another several days of volatile action.

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