S&P 500 SPDRs (AMEX: SPY) Hits Resistance Says Market Timer Frank Kollar

April 23, 2008 (FinancialWire) (By Frank Kollar)

Shares of the S&P 500 SPDRs (AMEX: SPY) moved sharply higher last week and in doing so, reached the 50% retracement for the entire October 2007 through March 2008 decline.

That level, at SPY $139.45, is resistance for this nascent rally and accordingly, this week has seen prices pull back from it. The SPY $139 level is also the highs reached on two prior rally attempts, on February 1 and February 27. Both of those rallies failed at this resistance level.

The S&P 500 SPDRs must close decisively above $139.45 in coming days to keep this rally alive. If it does, we should see SPY 142.62 in short order, and probably SPY 147.14 in coming weeks before profit taking sets in.

But $139.45 is the key.

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.