Stock Market Correction Ahead Says Market Timer Frank Kollar
April 24, 2009 (FinancialWire) (By Frank Kollar)
The S&P 500 Index (SPX) reached important resistance several days ago, the prior closing highs reached back on January 28 at $874.09 and February 9 at $869.89. The S&P Deposit Receipts (NYSE: SPY) match this resistance level at $87.39 a share.
Those prior 2009 highs mark the point where the final leg down in the bear market began. They also mark the point where the current correction in the stock market has likely begun.
SPX 869.60 was reached on April 17 and the stock market has struggled and lost ground since.
Strong support for a correction is at SPX 771.47 and then SPX 748.82.
Caveat; a close above SPX 874.09 would constitute new 2009 highs and a breakout for the S&P 500 Index. For the SPYDRS, it would take a close over $87.39.
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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