Where to Next for the S&P 500 Index (SPX) Asks Market Timer Frank Kollar

January 9, 2009 (FinancialWire) (By Frank Kollar)

The S&P 500 Index – SPX took a substantial hit on Wednesday, January 7, losing 3% by the close. Thursday’s close was positive, but not my much. Where to next?

Look for higher highs in coming weeks. The SPX was over due for some selling after several strong days of holiday gains were just asking for profit taking.

There is a nice rising trend support line connecting the lows for the SPX that goes back to mid-November. So far the sell-offs have been contained, orderly and more important, they have not been on rising volume. The rise in the CBOE Volatility Index – VIX over the past couple of days shows increased fear, also bullish.

The SPX just closed decisively above critical resistance at 907. This forecasts a run for the prior rally highs at SPX 1005.

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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