Is the NASDAQ Now in Thin Air?

Of the three major indexes I track: DOW, NASDAQ and the S&P 500, only the NASDAQ is in thin air.

What do I mean by that? So far the NASDAQ is the only index to make it past the 50% Fibonacci retracement levels as measured from the highs seen in 2007 and the lows that were made in March of this year.

Both the Dow and the S&P 500 have rallied strongly from their March lows but have not made it over the 50% retracement level.

Many professional traders – myself included – are looking at the NASDAQ’s Fibonacci retracement as it represents a potentially key turning point for this year’s market.

While not all the pieces are in place to go short or get out of long positions, one of the first clues is being put in place today by the Japanese candlestick charts.

Watch our video on the NASDAQ retracement levels, as well as one of the key components that could lead to a potential reversal to the downside.

Nasdaq Fibonacci Retracement Levels