MEAN REVERTING VOLATILITY

The old adage is that Volatility is mean reverting. As of yesterday's close, the price of the QQQQ, the 10 day SMA and the 50 day SMA are all about 41.33. The MACD Histogram is also about zero, and the 14 day RSI is right in the middle at 51. The Bollinger Bands have also contracted to a range of 56 cents, an unusually low top to bottom range.

What this means is that I do not have to go other blogs or websites and see pictures of paint drying to know what is happening in the markets . I know there has been very low volatility in the market over the past several days, but, I also know that Volatility is mean reverting.
This means that if volatility is low now it will be higher in the future and vice versa(see Sheldon Natenberg Option Volatility and Pricing). Therefore, I expect the markets will make a "decent sized" move in the very near future. Which way? The answer from the great technicians is that the market will generally move in the direction of the longer term trend. The top chart is a picture of a QQQQ weekly chart from April 2003 and from the looks of that chart, one would have to surmise the next move to be higher.