August is known for its heat and, for market participants, this August is expected to be extra-hot. Last Thursday marked the 11th straight day that SPX closed inside a 1% trading range, the first time this has ever happened. Regression to the mean tells us that a big surge in volatility is coming. Seasonality tells us that the month should end higher than it begins (which matches our Lindsay view of a Three Peaks and Domed House pattern).

Try a "sneak-peek " this month at Seattle Technical Advisors.com

Ed Carlson, author of George Lindsay and the Art of Technical Analysis, and his new book, George Lindsay's An Aid to Timing is an independent trader, consultant, and Chartered Market Technician (CMT) based in Seattle. Carlson manages the website Seattle Technical Advisors.com, where he publishes daily and weekly commentary. He spent twenty years as a stockbroker and holds an M.B.A. from Wichita State University.

© 2016 Copyright Ed Carlson - All Rights Reserved

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