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

April 30, 2008 (FinancialWire) (By Frank Kollar)

Shares of the S&P 500 SPDRs (AMEX: SPY) are just a fraction below the 50% retracement for the entire October 2007 through March 2008 decline. That level can be tough to surpass and so far this week, the SPY has backed off from it during both trading days.

Wednesday’s Fed announcement will likely be the catalyst that either sends prices above resistance, or locks in a pullback, likely short-term in nature. When the Fed makes its announcement on Wednesday, watch for a reaction at $141. If the SPY powers above this level, we will likely reach at least $145 in coming days.

If we reverse, expect a correction for the remainder of this week at least, though likely the trend will soon reinstate itself and push prices higher again.

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.