Market Rally Unabated Says Market Timer Frank Kollar

May 1, 2009 (FinancialWire) (By Frank Kollar)

The S&P 500 Index (SPX) continues to rally but is past due for profit-taking. Thursday’s reversal from a substantial gain to a fractional loss placed the SPX right below its early 2009 highs. If the SPX can close above 874.09 it would be a breakout for this big cap index. The S&P Deposit Receipts (NYSE: SPY) can be traded as a proxy for the SPX.

Bullishly, the Nasdaq 100 Index (NDX) has traded not only above its early 2009 highs, but also above its November 2008 rally highs. This close points to a continued advance to at least NDX 1498 in coming weeks, though profit-taking can slow things down at any time. The Powershares Nasdaq 100 ETF (QQQQ) can be traded as a proxy for this index.

You have to be bullish with charts that continue higher, seemingly without pause, but no advance goes in a straight line for long. Be bullish but watch for the inevitable correction that gets closer every day.

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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