Is The Bottom In?
March 16, 2007
The lows reached in last week’s Monday decline, directly followed by a strong accumulation day and then a week of small gains, closely matches this Wednesday’s intra-day lows for the Nasdaq 100 index (NDX), Russell 2000 Index (RUT), Nasdaq Composite Index (COMPQ) and to a lesser extent the S&P 500 Index (SPX).
This could be a double bottom and mark the lows of this correction. Aggressive traders might use the lows as a sell stop trigger. But volatility is still very extreme and should those lows be broken during the next weeks, we may very well see traders jump ship and an escalation of selling. The lows currently in place are a crucial support level for the markets.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
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