Retest of Lows? Asks Market Timer Frank Kollar

November 7, 2008 (FinancialWire) (By Frank Kollar)

Only two weeks after standing at the abyss, the stock market is again declining at breakneck speed. A week of solid gains has been decimated by two days of losses totaling 9.9%.

Though the losses are staggering, they are not exactly out of the ordinary of late as four and five percent declines are becoming commonplace, not to say they are any fun of course.

But what can we expect over the coming days? Using the S&P 500 Index – SPX the lows achieved back on October 10 still appear to be a firm bottom. They were tested on October 27 and held, with a 10% rally the following day.

This third retest may end at current levels, or move lower in coming days, but if the bottom is in place as we believe it is, look for the selling to end and buyers to step back in once the smoke has cleared.

We are still looking for SPX 1037 to be reached in coming weeks.

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.

Go to previous Press Releases & Trading Notes.