S&P Balks at Critical Resistance Says Market Timer Frank Kollar
May 8, 2009 (FinancialWire) (By Frank Kollar)
The S&P 500 Index (SPX) touched its January 2009 rally highs on Thursday, May 6, and immediately reversed to the downside, closing with a 1.3 loss. It was not a bearish outside reversal day, but it came close. The S&P Deposit Receipts (NYSE: SPY) can be traded as a proxy for the SPX.
The Nasdaq 100 Index (NDX) has traded not only above its early 2009 highs, but also above its November 2008 rally highs. This is bullish, but the S&P 500 Index is the critical index to watch for changes in overall market direction The Powershares Nasdaq 100 ETF (QQQQ) can be traded as a proxy for the Nasdaq 100 Index.
The pullback is unlikely to end with only one down day, though in the current volatile markets anything can happen. There is support at SPX 874.09. After this, the next support is down at SPX 827.
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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