S&P 500 SPDRs (NYSE: SPY) Turn Higher at Support Says Market Timer Frank Kollar
June 19, 2009 (FinancialWire) (By Frank Kollar)
The S&P 500 SPDRs (NYSE: SPY) finally pulled back this week as traders took profits after a nearly non-stop three month advance.
On June 1 the SPDRs surpassed their 200-day moving average for the first time in well over a year.
The market declines over the past week reached right to that moving average by the close on Wednesday, and on Thursday the market reversed and moved higher.
Is this the end of the correction?
If we continue higher on Friday, June 19, it will end the week on a strong note and we can probably look forward to gains early next week, barring a bad news event. However, a close below the 200-day moving average would likely result in lower lows.
The 200-day moving average is currently at SPY 90.86. Just below this level is the next support, the 50-day moving average at SPY 89.84.
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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