As everyone weighs the pros and cons of this market, it's worth noting that both the NASDAQ and OEX are working through critical Fibonacci levels. Both charts have bullish implications for stocks.
The OEX is sending the strongest message. The biggest of the big, the OEX has been the blue chip laggard since 2002. However, the OEX broke to 6-year highs this week. Even better, it pushed through Fib 62 at the same time, When approached from below as the OEX has done, Fib 62 is regarded as beginning the "home stretch" of the epic Fib odyssey. This zone generally offers less resistance (the OEX fell through it in just 4 months), and price often accelerates upward from there (don't get too excited: we're talking MONTHS here). Note that the various technical indicators - Stoch, ADX, CCI and MFI -- look ready for a continued push higher.
The NASDAQ sits just beneath Fib 38, which is another key level. The Composite has -- more or less -- made two prior attempts at Fib 38 this year, and has been denied both times. Should it break above -- and the odds look good -- this turns over a whole new leaf for the NASDAQ. Like the OEX, various technical indicators support the idea of a fresh round of gains.
Nothing goes straight up, but these charts suggest that any dips will eventually be bought.