S&P 500 SPDRs (AMEX: SPY) Flirt With Disaster Says Market Timer Frank Kollar
January 8, 2008 (FinancialWire) (By Frank Kollar)
Shares of the S&P 500 SPDRs (AMEX: SPY) gapped lower on Friday January 4, but though Monday’s positive close was welcome, it still leaves this widely traded ETF only a fraction from breaking below critical support.
The S&P 500 SPDRs traded below, but did not close decisively below, SPY 141.00 three times in the past half year. On August 16, 2007 it marked the low of a severe correction and SPY rebounded from that date. Again, on November 26, 2007 SPY flirted with that number but closed at SPX 140.95, right at support. It rebounded the next day.
Now the S&P 500 SPDRs find themselves at the SPY 141.00 level again. Monday’s close was a bit higher, but still the Spyders are a fraction away from disaster. A solid close below $141 and traders can expect lower lows to follow.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy has a position in the S&P 500 SPDRs.
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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