Band Width Contracts as Dow Transports Stall
The Dow Transports have been flat for four weeks as the Average forms small weekly candlesticks in the 5000-5100 area. A visual assessment indicates that these are the smallest candlesticks of the year. Bollinger Band Width (10,2) contracts as the Average stalls. This volatility contraction could give way to a volatility expansion in 2011. Watch the direction of the price break for the first clue.

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