S&P 500 Index (SPX) Sells Off Says Market Timer Frank Kollar
December 12, 2008 (FinancialWire) (By Frank Kollar)
The S&P 500 Index (SPX) sold off on Thursday, December 11, but the decline started on Monday when resistance was reached, but not surpassed.
The SPX reached resistance at 909 where it closed Monday, December 8. Just above this level is the 50-day moving average which the SPX has been below consistently since September 2.
The SPX has reversed at Fib support and resistance levels three times in a row in the past several weeks. On November 28, December 2 and December 8. This formed a bearish trading pattern that called for lower lows.
Add the 50-day moving average and the odds of a selloff grow very large. On Thursday, December 11, we had just that with a 2.9% decline. Looking ahead, lower lows are expected with initial support at SPX 816, some 6.5% lower than current levels.
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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