Major Indices In Between The Lines

The stock market is holding OK, pretty good actually, considering the unemployment rate in May came in at 9.4%, highest since 1983. (For more, you can read my other blog post.)

(Except... they are slamming the gold and silver stocks AGAIN!!)

So, between the "green shooters" and realists (you could say "doom and gloomers"), where does the market stand right now?

The answer: IN BETWEEN.

Here are the weekly charts of Dow Jones Industrial Average, S&P 500, and Nasdaq, with only Fibonacci Retracement lines drawn between the week of September 22, 2008 and the March 09 low. Dow and S&P this week are right in between the 38.% retracement line and 50% retracement line.

Nasdaq has been outperforming the other two in this whole run from the low, and that shows in the chart, too. Instead of in between the same Fib lines as the other two indices, Nasdaq is in between the 50% retracement line and 61.8% retracement line.

For Nasdaq, the next potential Fibonacci line resistance could be the 50% retracement line from the Oct-Nov 07 top to March 09 bottom, around 2,000.

Analysts and traders are saying now is the "make or break" time for the market. But then, haven't they been saying that for at least 2 months?