Bollinger Bands suggest top in S&P500

The six year bull run in US stocks may be nearing its end as the Bollinger Band starts to contract from the high spread seen last year, says Peter Lee at UBS.

Previous sell-offs in 2000 and 2007 were preceded by a narrowing of the bands and then a cross of the price below the mid-point of the band. The break below the current mid point (around 1936) could then see a decline to 1696 and 1600.

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