S&P SPDRS (AMEX: SPY) Again At Critical Support Says Market Timer Frank Kollar
August 1, 2007 (FinancialWire) (By Frank Kollar)
The exchange-traded fund S&P Depositary Receipts SPDRs (AMEX: SPY) reached the Fib 61.8% retracement-support level last Friday. On Monday, SPY rallied with strength from that support level. On Tuesday, they declined again and stopped, again, right at this support level.
Tuesday’s decline was on lower volume than previous selling days and the second lowest volume day this summer (other that the July fourth holidays). Partly this is because so many traders are on summer vacation, but it also is because although the sellers are in control, they are not likely to stay in control. Volume id decreasing and fear is growing. This all points to a bottom very soon.
If support, at SPY 144.00, holds, look for another rally attempt. If we close decisively below support, we are likely to move lower to the next Fib support level at SPY 140.86.
Fibtimer.com (http://www.fibtimer.com) holds a position in SPY 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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