Market Needs to Hold Here Says Market Timer Frank Kollar

March 28, 2008 (FinancialWire) (By Frank Kollar)

The stock market is consolidating gains made after what appears to be a double bottom in the major indexes, made on January 22 and March 17.

The second test of the lows is in question as it is, with the S&P 500 Index – SPX and Nasdaq Composite Index – COMPQ both reaching lower intra-day lows and lower closing lows than their January 22 panic lows.

If the current weakness holds above 1306 for the SPX, we should be good for continued upside. But is this level fails in coming days, we could be setting up for a third test of the lows, and third tests have a bad track record.

We remain uncomfortable with this correction bottom, though we will follow the trend whichever direction it goes. If you are long this market, keep your finger on the sell button.

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.