As the stock market bounce continues, wary investors begin to wonder how much longer this rally will last.
While no one can predict the future, we can utilize technical indicators to gauge the rally’s health.
Today we highlight a critical Fibonacci retracement level (38.2) and why it will likely send a big message across several key US stock market indices.
Today’s chart 4-pack chart includes stock indices facing respective 38.2% retracement levels of the downturn this year: NASDAQ 100 (NASDAQ:), , , and .
QQQ, NYSE, Russel 200, Wilshire 4500 Weekly Charts
Bulls hope we are closer to the beginning of the rally than the end. For this to be true, each of these indices must break out above each (1).
On the flip side, bears hope that the 38.2 Fibonacci level stops the rally. Either way, the results will be important to both bulls and bears. Stay tuned!