Support Holds for S&P 500 Index - SPX Says Market Timer Frank Kollar

June 20, 2008 (FinancialWire) (By Frank Kollar)

The S&P 500 Index - SPX has held at support, at least for now. The SPX declined to the 50% retracement of the March to May rally at 1341.22, and though this has not been a week to write home about so far that level has held.

Just below this level is critical support at SPX 1321.49. If the 2008 rally is to stay intact, it needs to reverse at these levels. A break below critical support would point to a decline to test the March panic lows. That would feel like panic time indeed should it occur.

There are bullish indicators though, one of them being the Nasdaq 100 Index - NDX that reversed to the upside on June 13, and so far has seen steady gains. Thursday’s weak advance in the SPX was far exceeded by the NDX gain of almost 1.5%. Strength in the tech stocks is bullish for the entire stock market, even though the economic news and energy prices have everyone spooked.

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.