S&P SPDRS (AMEX: SPY) Almost Break Out Says Market Timer Frank Kollar
May 31, 2007 (FinancialWire) (By Frank Kollar)
On Wednesday, the S&P 500 Index – SPX broke out to new all time highs. The exchange-traded fund S&P Depositary Receipts SPDRs (AMEX: SPY) is just a small fraction away. What’s next?
Wednesday’s close at $153.48 for the SPDRs missed new all time highs by only eight cents. What is important here is the breakout in the SPX. A prior attempt to break out last week resulted in a quick sell off but only for a matter of days. This new high points to higher highs in coming days. And to top it off, it came on a day that the Chinese Stock Market lost over 6%, bringing early morning visions of substantial loss in U.S. financial markets.
This close in the SPX forecasts a new target for this rally at $156.45. The SPDRs are certain to make equivalent new highs.
Fibtimer.com (http://www.fibtimer.com) holds a position in SPDRS in its ETF Timer Portfolio.
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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