Short Term Target for S&P 500 SPDRs (NYSE: SPY) Says Market Timer Frank Kollar

June 12, 2009

The S&P 500 SPDRs (NYSE: SPY) continue their climb with new 2009 highs reached in intra-day trading on Thursday, June 11, though not a new closing high.

Looking for a short term target seems a prudent thing to do considering this advance has now spanned three months.

The 50% retracement of the last leg down in the bear market, spanning August 28, 2008 to March 9, 2009, is about as short term as we can find. That 50% resistance level is at SPY 98.80 about 4.2% above current levels and a likely candidate for the start of some selling.

But the real critical resistance level, one that is likely to result in strong selling if it is reached soon, is the Fib 61.8% retracement at 106.22, about 12.0% above current levels.

It may be hard to believe the S&P SPDRs could still move another 12% higher without a correction first, and maybe they won’t, but if we reach SPY 106.22, watch out below.

The http://www.fibtimer.com ETF 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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