Volatility Is Dominant Theme In Stocks by Michael Carr, CMT
The market may be setting up for a period of consolidation.
From a technical perspective,
the biggest factor
in the markets is
1). Since the large down move in autumn
2008, price action has
settled into a consolidation pattern.
While some technical indicators
show signs of strength,
others indicate further weakness.
Bollinger bands, the technical
trading tool developed by
John Bollinger in the early
1980s, quantifies the observation
that volatility is dynamic, described by Bollinger as
meaning that periods of low volatility are inevitably followed
by periods of high volatility and vice versa.