Last week preformed what a consolidation market should– prices stayed in the recent range (inside to the previous week) with neither a lower low nor a higher high. That allowed some of the technical indicators to moderate as the Weekly RSI retraced from being in the extreme over-bought area, but remains in the over-bought zone. The Bollinger Band study has prices just at the 2 standard deviations above the 20 week SMA, which is starting to correct from it’s recent extreme level of nearly 3 standard deviations over the SMA.
This price behavior and movement is consistent with recent run during August and now it will be important to identify the support zone that the market should establish, likely from the historical weakness in prices during the Labor Day time period.
