S&P 500 SPYDRS (NYSE: SPY) Nearing Resistance Says Market Timer Frank Kollar
July 24, 2009 (FinancialWire) (By Frank Kollar)
The S&P 500 SPYDRS (NYSE: SPY) and S&P 500 Index (SPX) are nearing resistance levels that could stop this strong rally.
The S&P 500 SPYDRS are now just below the 50% retracement resistance level, at $98.80, for their August 11, 2008 to March 6, 2009 decline.
The S&P 500 Index is now just below the 50% retracement resistance level, at $987.47, for its August 11, 2008 to March 6, 2009 decline.
The 50% retracement is very likely to slow down, or even stop the advance. On the flip side, a decisive close above this level would likely propel these shares to the 61.8% retracement resistance level.
For the S&P 500 SPYDRS this is at $106.22. For the S&P 500 Index it is at 1063.59.
Of course the SPX 1,000 level is also likely to be a stumbling block just because it is such an obvious number.
The http://www.fibtimer.com ETF Strategy has a position in the S&P 500 SPYDRS.
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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