Correction Ahead Says Market Timer Frank Kollar
April 27, 2007 (FinancialWire) (By Frank Kollar)
The stock market, and specifically the S&P 500 Index (SPX) are nearing levels where a correction should not only be watched for, but counted on. Traders using the S&P Deposit Receipts (AMEX: SPY) to follow this index should be watching both SPY $151.83 and SPY $153.56. Note these are only 1.5% to 2.6% from Thursday’s close.
In last Friday’s Alert titled “Damn The Torpedoes, Full Speed Ahead,” we were looking for a rally. We have had the rally in spades and traders need to recognize that for every rally there is a correction.
Consider what the SPY will be dealing with just ahead, with strong resistance at SPY $151.83 (based on Fib support-resistance levels) and then the prior March 24, 2000 closing market highs at $153.56. A correction could start at any time between current levels (that means tomorrow) and these stated resistance levels.
Short-term traders beware. Investors and market timers do not be concerned, as there will be higher highs after the correction.
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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