S&P 500 SPDRs (AMEX: SPY) Breaks Support Says Market Timer Frank Kollar
January 9, 2008 (FinancialWire) (By Frank Kollar)
Shares of the S&P 500 SPDRs (AMEX: SPY) broke below critical support on Tuesday and also logged in a bearish trend continuation day while they were at it.
Just yesterday we wrote, “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.”
Today’s decline came after the SPDRs had initially traded higher, but then reversed midday. Once support was broken, traders sold heavily into the close.
The close below support forecasts lower lows, to at least 135.81 in coming days, with a potential to reach 129.90 if the selling gains momentum.
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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