Nasdaq 100 (NDX) & Russell 2000 (RUT) on Fire Says Market Timer Frank Kollar

August 5, 2008 (FinancialWire) (By Frank Kollar)

While the S&P 500 Index – SPX continues to gain, the Nasdaq 100 Index – NDX and Russell 2000 Index – RUT are in the midst of a steep rally.

Though both indexes started off slowly, they are now rising in stellar fashion, gaining ground in leaps and bounds while the SPX moves higher, but is lagging far behind. Since the Stock market reversed to the upside on July 15, the SPX has gained 6.5%, while the NDX is up 9.3% and the RUT is ahead a whopping 13.9%.

The good news is; the Nasdaq and small cap indexes typically lead at the beginning of new sustained advances and the SPX typically catches up. The bad news is; strong resistance levels are fast approaching.

For the SPX it is 1347, about 4% above Thursday’s close. Both the NDX and RUT have surpassed critical resistance levels and likely will test their prior June rally highs at NDX 1250 and RUT 763. That rally failed. This rally will face huge headwinds when those levels are again reached.

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.

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.

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