Breadth Surge Points Higher Says Market Timer Frank Kollar

April 4, 2008 (FinancialWire) (By Frank Kollar)

On Tuesday, April 1, the stock market “April Fooled” the bears with a huge rally. Both the S&P 500 Index – SPX and Nasdaq Composite Index – COMPQ had breadth surges, with the SPX scoring better than 9 to 1 up volume vs. down volume, and on higher daily volume.

Such breadth surges are not often seen and when two or more such trading days occur within a three month time-frame, it typically points to higher stock market prices ahead. In this case, Tuesday’s breadth surge was the third such day in a month.

This bodes well investors as historically the major indexes have risen some 10% to 14% in the six-twelve month period following such an event.

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.