For Sunday, June 1, 2008                                              Go to Website
	Current Strategy Positions FibTimer currently has 11 successful timing strategies   Aggressive S&P Position -          BULLISH   Aggressive Nasdaq Position -   BULLISH   Aggressive GOLD Position -      BEARISH   Aggress. SMALLCAP Position - BULLISH   U.S. Dollar Timer Position -        BULLISH   Aggressive BOND Position -      BEARISH These positions were started over previous weeks. You need a paid subscription for real time signals. Sector Funds, ETF and Stock positions are not included above.

Last week we wrote:

"...The S&P 500 Index - SPX suffered through a week of profit-taking that at times included bouts of extreme selling. Back-to-back 200 point Dow losses on Tuesday and Wednesday added to the unease."

This week:

Though this week was strong one for the stock market, the strength was not equally divided. The S&P 500 Index - SPX had gains but those gains lagged the Nasdaq indexes considerably.

With only a single week of disparity, there is not much that can be inferred from this. Just that the SPX did not perform as well and may make up the distance next week or in coming weeks.

But one thing is certain. the Nasdaq indexes are and have been outperforming the rest of the stock market for the last two months. Tech stocks are back in vogue and this bodes well for a continuation of this advance. Typically the Nasdaq leads the way in advances that last for a substantial time.

The SPX has not made it back to its 200-day moving average much less crossed above it. It was the 200-day moving average that started the selling two weeks ago so this is the target for the advance. The SPX needs to reach, and close above, this closely watched average, currently at about SPX 1420.

Initial resistance remains at the 50% retracement level at SPX 1416. If this level and the 200-day moving average are surpassed, the new target will be SPX 1454 which is critical resistance for the advance.

There was good news on the oil front as crude backed down from its highs. Oil has been in bubble mode for months now and some retracement is past due. Of course there is no way to know when the bubble will burst, nor how far down oil prices can drop when it bursts. But still, when it happens, look for higher stock market prices as a result.

The CBOE Volatility Index - VIX has moved to lows that indicate we may see a new lower base forming in this index. Potentially in the 12-13 level. If this happens the stock market will be considerably higher as a result.

The 50-day moving average continues to rise while the 200-day moving average is again the target for this advance.

Conclusion:

The stock market was hit by a round of profit-taking last week, but it occurred at expected resistance levels. When selling occurs right where you expect it to, the advance is likely just enduring one of many corrections it will face along the way.

This week the SPX regained half of the prior week's losses, but the Nasdaq indexes regained all of its losses. Strength remains with the tech stocks, as it has for the last two months.

The charts are still bullish for all the major indexes.

For subscribers who overly worry about short term swings in the financial markets, remember that you do not have to be an aggressive timer to be a profitable timer. Money is made in both aggressive and conservative style trading. Our Conservative S&P Timer strategy trades only the long term trends but that means it profits without the numerous buy and sell signals that active and aggressive traders take.

The SPX portion of this strategy is in a BULLISH position. We are in the Rydex Nova Fund - RYNVX (or other bullish S&P 500 index fund) for both active & aggressive traders.

S&P 500 Index (SPX) Daily Chart

Nasdaq 100 Index (NDX) Chart Analysis

Last week we wrote:

"...Until this week, the Nasdaq 100 Index - NDX had advanced almost non-stop for five weeks. That pace could not be sustained and the selling this week was the result. In fact, had the rally continued another couple of weeks, the selling would have been worse."

This week:

All of the Nasdaq indexes had powerful rallies this week. The Nasdaq 100 Index - NDX is now at new closing rally highs, and even the small caps rallied and reached new highs this week.

The NDX is one of the strongest indexes in this advance. Unlike the SPX which failed at the 200-day moving average, the NDX has been above this level for two weeks and stopped right at its 200-day average during the correction last week.

When support holds it is bullish. That support for the 200-day moving average was also right at the 50% retracement support for the NDX (see below chart).

Nasdaq volume also rose along with prices. After a week of strong selling, it is bullish when volume surges along with prices, especially so soon after the selling.

Importantly, the NDX not only reached the Fib 61.8% retracement level this week, but also closed above it. This forecasts higher highs for the NDX in coming weeks, and potentially a run for the Wave B highs at NDX 2140 over the next several weeks.

The NDX remains substantially above its support levels that are down at NDX 1853 to NDX 1810.

The NDX portion of this strategy is in a BULLISH position. We are in the Rydex Nasdaq 100 Fund - RYOCX (or other bullish Nasdaq 100 index fund) for both active & aggressive traders.

Nasdaq 100 Index (NDX) Daily Chart