Stock Market Reversal? Asks Market Timer Frank Kollar
September 25, 2009 (FinancialWire) (By Frank Kollar)
Last week we wrote that the S&P 500 Index (SPX), and
it’s tracking ETF the S&P Deposit Receipts (NYSE:
SPY) were facing trouble just ahead.
For the SPY; the 50% retracement of the entire bear market
decline from the October 11, 2007 highs at $157.52 to the
March 6, 2009 lows at $67.10 is at SPY 112.31.
You do not need to reach the exact number. As the 50%
retracement level nears, profit-taking was inevitable and
it appears we are right in the middle of just that.
On Wednesday, September 23, the stock market reversed
from a sharp rally and ended lower. For the SPY it was
a bearish outside reversal day. Such patterns typically
are followed by further declines.
It does not forecast the end of the bull market, but certainly
some caution is due as we could have lower lows in coming
days and/or weeks.
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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Disclaimer: The financial markets are risky. Investing is risky. Past performance
does not guarantee future performance. The foregoing has been prepared solely
for informational purposes and is not a solicitation, or an offer to buy or sell
any security. Opinions are based on historical research and data believed reliable,
but there is no guarantee that future results will be profitable. |
