The indices continue to hang tough near the top of their trading ranges. The market feels like it wants to breakout but I guess it’s lacking the proper catalyst (world peace breaking out?).
Below are the charts of the S&P 500 and the Nasdaq:
March 2, 2006 Stock Market Recap
Hey Mike!
The market just won’t break out. I think right now there’s a big battle going on between the bulls and the bears and in the end whichever has the most persistence will win. We’re stuck at a major Nasdaq resistance that was created from a pullback from the dot.com bubble crash. I think if the market does break out from here it will be MAJOR. It won’t be a 10% run, it could be double that or more in a single run. Otherwise, it will stay in this long term consolidation as seen in the past couple of years.
The whipsaw action we’ve been seeing this week could be the result of a bottom/top in which the markets usually do before a real run. I know you’ve mentioned about such bevahior the last time the Nasdaq was bottoming before the nice end of 2005 run.