In a crazy market where one day is drastically different from the next, Jim Cramer has some real worries. The inconsistency has driven him to take a look at the charts and see what they have in store for the future. And while they are not always right, at least they are not emotional.
Cramer turned to the help of Carolyn Boroden, a technician who runs FibonacciQueen.com and is a colleague of Cramer's at RealMoney.com, to find out what could be in store for the S&P 500 and very important Dow Jones transportation index.
"Mad Money" last checked in with Boroden at the end of March, when she advised investors to be cautious of the S&P 500 with a ceiling level of 2,138. Since then, the S&P has rallied into a brick wall, right up to 2,134 on May 20. In short, she told investors almost exactly where the S&P 500 would peak.
Boroden based her target of the S&P by conducting a Fibonacci analysis. This is based on the observation made by Leonardo Fibonacci, the Italian mathematician from the Middle Ages who discovered that a key series of ratios tend to repeat themselves over and over again in nature. Many have used these ratios in predicting growth in plants, snail shells, pine cones and yes, the stock market.
Looking at the S&P 500's weekly chart, it hit that key high on May 20 at 2,134 and has since declined 2.5 percent. So where does she think it is headed?