Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
We have a rare situation this morning where the entire “candle” (day’s range) of the S&P 500 is below the lower bollinger band. I can’t find another situation exactly like it in the past few years, but there were 2 episodes in August and October 2011 where the majority of the candle was below; both led to decent 3-6 day type of bounces.
Just over a month ago we were talking about historical overbought conditions on the weekly and monthly charts – what a sea change.
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