Market Stands at the Abyss Says Market Timer Frank Kollar
October 24, 2008 (FinancialWire) (By Frank Kollar)
The stock market stands at the abyss. The intra-day lows reached on October 10, at 839.80, are all that stand in the way of a second market meltdown.
Over the past two weeks, the S&P 500 Index (SPX) has tested those lows twice and so far they have held. Other major indexes are also at critical levels, but the SPX is the market leader and where it goes, so will the others.
A break below SPX 839 will lead to, at best, a test of the prior bear market lows down at SPX 768.63, some 15% lower than current levels.
Thursday’s late session rally, and close above SPX 900, is a positive. A follow-through Friday morning is needed.
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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