S&P 500 Index - SPX and Nasdaq 100 Index - NDX Ready To Bounce Says Market Timer Frank Kollar

July 11, 2008 (FinancialWire) (By Frank Kollar)

Both the S&P 500 Index - SPX and Nasdaq 100 Index - NDX have reached or are near support levels that should result in a technical bounce. Whether that bounce will last for long is another question.

The S&P 500 is just above its 2006 lows around SPX 1220. The Nasdaq 100 is right at its Fib 61.8% support level at NDX 1810.

A bounce here though could set up some short term bullish trades using the Powershares Nasdaq 100 (NASDAQ: QQQQ) or SPDR S&P 500 (NYSE: SPY). Support levels would make appropriate buy stops though with current extreme volatility, trailing stops are important.

A decisive close below these support levels would likely result in continued selling and considerably lower lows. For the Nasdaq 100, those lows could reach NDX 1700 and for the S&P 500, 1170 is the next support level.

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.