With the volatility contracting over the last few weeks, the Bollinger Bands on the Utilities SPDR (XLU) are at their narrowest since March 2011. The Bollinger BandWdith indicator is below .50 and the XLU range has narrowed to 75 cents. Watch support and resistance for the next directional clue.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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