Can the Rally Last in ISHARES Russell 2000 Index (NYSE: IWM) Says Market Timer Frank Kollar

March 11, 2009 (FinancialWire) (By Frank Kollar)

After shares of the ETF ISHARES Russell 2000 Index (NYSE: IWM) broke below their November lows, we were watching for the first support level, at IWM 34.91, to be reached.

This support was reached when IWM closed at $34.39 on Monday, March 9. IWM skyrocketed higher the following trading day, Tuesday, March 10. Of course the entire stock market rallied that day, but it is important that IWM did reach its support before reversing.

Now the question of the day is; can IWM continue its rally? When we watch support and resistance levels, we look for closes that exceed them. In this case, Monday’s close was about 2% lower. Tuesday’s rally also was not a technical reversal day.

For these reasons, plus market sentiment that has not shown the fear needed for a market bottom in past weeks, we look for IWM to reverse lower and trade to at least its next support level, at $30.54, in coming weeks.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in IWM.

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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