Chart of the Day – July 7, 2020

By: Chris Wenner in Charts 07/07/2020

Bollinger bands are often useful to help identify possible entry and exit points.  When indices or individual equities are at the top end of their BB’s – and especially if they pierce through that top – it’s likely a good time to reduce exposure.  And vice versa for when at the bottom end of their BB’s – and especially if they pierce through that bottom.

Currently, the S&P 500’s monthly bollinger bands have significantly widened after the market experienced outsized volatility earlier in the year.  Right now, the upper bollinger band is roughly 3326 & the lower is 2549.  So while we’re not there yet on the upside, the risk/reward using the upper and lower levels isn’t very attractive on the long side.

CW

 

 

By: Chris Wenner

Managing Director

Jonathan Molchan

Wennco's innovative strategies and robust OCIO capabilities are designed for RIAs, Family Offices, and high-net-worth individuals.

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