Losses Mounting for S&P 500 SPDRS (AMEX: SPY) Says Market Timer Frank Kollar

February 3, 2009 (FinancialWire) (By Frank Kollar)

Shares of the S&P 500 SPDRS (AMEX: SPY) have now lost 8.6% in year 2009, not an auspicious start for an ETF that was down 38.2% in 2008.

The expectation of a reversal has been tossed about by many analysts, considering how overdue the financial markets are for some sort of rally, even a temporary one.

But as of Monday’s Feb 2 close, SPY is getting uncomfortably close to its 2009 lows at $80.54. These lows mark the bottom of a trading range that has held SPY since early January. The upper level of this trading range is $87.39.

Watch the next several days carefully for a break below the lows. Should SPY close below $80.54 we will be looking for a retest of the November lows at $75.54. A reversal at $80.54 could lead to at least a short term rally.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy has a position in the S&P 500 SPDRS .

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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