S&P 500 Index (SPX) Closes In On Five Year Support Level Says Market Timer Frank Kollar
January 4, 2008 (FinancialWire) (By Frank Kollar)
The stock market has begun 2008 with losses, though after last year’s seemingly endless volatility, few traders expected the markets to suddenly change for the better.
But there is an ominous tone to the markets this time as losses in the S&P 500 Index (SPX) approach support levels that date back to the end of the bear market. Using long-term charts, the S&P has held above a rising support trend line since early 2003. That line will be broken if the S&P closes below about SPX 1433.
The 1433 level could also result in a bottom for the current selling, but beware the market if we move lower. A five-year support trend line is a huge bearish indicator if broken.
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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