Stock Market Breakout Says Market Timer Frank Kollar

June 6, 2008 (FinancialWire) (By Frank Kollar)

The S&P 500 Index – SPX erased two weeks of losses on May 22 with a powerful rally adding almost 2% to this big cap index. We wrote three weeks ago that the rally was very much intact, and the current round of profit-taking was only to be expected after the sharp gains to date.

Even more important is the strength in the Nasdaq 100 Index – NDX which actually reached, and closed at, new rally highs.

Watch for a close above 1416 for the SPX which is an important resistance level. Just above 1416 is the 200-day moving average as well as the prior rally highs. If the SPX surpasses those levels in coming days, the target for this rally will be SPX 1454.

The NDX, at new rally highs, has a target of 2140, the prior December 2007 highs. Quite an accomplishment if we get there.

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.