Stocks Still Stink! No Break-Out Yet!

Even following the bullish revelations about a potential bail-out or fix for some of the bond insurers last week, stock index futures continue to trade within an extremely tight range, according to the most recent charts. Note that the Bollinger Squeeze indicator has turned to red dots (blue rectangle), indicating that volatility is too low to trade on the daily charts. The Bollinger Bands themselves are contracting even more, and stock index prices are trading within a remarkably tight trading range. Neither the bulls nor the bears are prevailing in this battle yet.