Market Rally Ahead Says Market Timer Frank Kollar

April 25, 2008 (FinancialWire) (By Frank Kollar)

If you have been keeping your eyes shut lately to avoid the pain of market declines and market volatility, you may want to check out the current charts. The S&P 500 Index – SPX is up some 9.5% from its March lows while the Nasdaq Composite Index – COMPQ is up 12.8% from those lows.

Both of these indexes have pushed above declining trend resistance lines that held prices down for three months. The NYSE has had two breadth explosion days (better than 9 to 1 up vs. down volume in the last two months), typically seen before new bull markets.

The Federal Reserve is aggressively fighting to support the economy with lower interest rates and cash infusions. “Don’t fight the Fed” has been good advice for many years.

Not every indicator says rally of course, and volatility is at extremes. There will surely still be scary days ahead. But then the financial markets always climb a wall of worry. The wall is there, but the tea leaves are reading rally.

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.