S&P 500 Stalls Says Market Timer Frank Kollar
October 5, 2007 (FinancialWire) (By Frank Kollar)
It was only Monday that the S&P 500 Index (SPX) had that huge rally, bringing this widely followed index of big caps within a fraction of new all-time highs.
But those new highs have been harder to reach than many traders expected. The SPX needs a close above 1553.08 to break out and make headlines. Today’s close, at 1542.84 remains tantalizingly close, but is still just below Monday’s highs.
Take a clue from the Nasdaq Composite Index (COMPQ) and Nasdaq 100 Index (NDX), which broke out two weeks ago. The Nasdaq leads the market during healthy advances that last. That is exactly what is happening now. Look for new all time highs in the SPX tomorrow if the employment report is seen as bullish. If not, then within the next week or so.
A breakout to new highs could be explosive, as traders tend to jump on board after they hear bullish news and see new highs.
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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