Directional Move...

I don't know if you recall this post from late Friday afternoon last week, "Bollinger Bands"

It showed all of the averages in a tight squeeze which generally means a directional move is coming shortly. There was also a triangle formed all of Friday.

I had talked about the triangle earlier and the fact that often these very common/obvious patterns are head faked and a head fake on this one would be to the upside.

That's what happened and we have a directional move now in all of the averages plus the Euro which was also included, so here's what the updated chart looks like now.

30 min Bollinger Band Squeeze on Friday, in white the upside break out of the triangle and at the bottom a Demark-based indicator sell signal. If this gap holds, then we have an island top and a potential breakaway gap, which both would be considered pretty bearish.

In the post linked above, this was also the first BB squeeze of the entire rally.