Is The Rally Over? Asks Market Timer Frank Kollar
March 30, 2007
After a week of advances, including two bullish accumulation days, the stock market appears to have rolled over and resumed its bearish ways. But there are strong support levels just ahead.
The S&P 500 Index (SPX), which closed at 1422 Thursday, can be expected to find support at 1400-1392. The Nasdaq Composite Index (COMPQ) should find support at 2396-2380, the upper level of which was reached intra-day on Thursday, and the Russell 2000 Index (RUT) should find support at 786-780, about one percent below Thursday’s close at 794.
If we see reversals in these indexes at support, the market should make a run for the 2007 highs. If support levels do not hold, we will be looking at a test of the correction lows in coming days.
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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