Huge Move Ahead For S&P 500 Index - SPX and Nasdaq 100 Index - NDX Says Market Timer Frank Kollar

February 22, 2008 (FinancialWire) (By Frank Kollar)

The S&P 500 Index – SPX and Nasdaq 100 Index – NDX are both forming pennant formations in the weeks after the panic lows on January 22 and 23.

Regardless of the bearish articles and TV commentators, the lows in January have all the requirements for a bottom that should be followed by a substantial advance.

But so far, that advance has been more sideways than up and as the weeks pass by, a glance at the charts shows both indexes reaching lower highs on the rallies and higher lows on the declines. Drawing a line through the highs and another through the lows leaves you with the pennant formation.

Typically, when a pennant formation is decisively broken to the upside or downside, the market continues in that direction. In this case the downside has one more support level that could stop a sell off, those January lows. The upside has little to stand in the way of a sustained advance.

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.