Late Day Selloff Ominous Says Market Timer Frank Kollar

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

The S&P 500 Index – SPX suffered a late day selloff that has the potential to turn ugly very fast.

There were technical reasons for Thursday’s December 4 decline, including the market reaching the 61.8% retracement of Monday’s huge down day. There was also lots of bad news with automakers meeting increasing skepticism in their testimony to Congress and several companies announcing additional layoffs.

But during it all, the market stayed close to even until the last couple of hours, when bears took over and loped several percent off the indexes, including the Nasdaq as well as the S&P.

The odds of follow through are high and if we get some momentum Friday, we could see Monday’s lows, at SPX 859, tested.

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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