Market Tests Critical Resistance Says Market Timer Frank Kollar
October 9, 2009 (FinancialWire) (By Frank Kollar)
Both the S&P 500 Index (SPX), and its tracking ETF
the S&P Deposit Receipts (NYSE: SPY) have pulled back
in classic 3 wave declines over the past two weeks.
But now, as they approach their prior 2009 rally highs,
they also face do-or-die resistance levels. A failure to
make new highs will likely result in declines and a test
of their correction lows, while a breakout above their
old highs would pave the way for another leg up in this
advance.
For the SPY, the resistance level to beat is at $108.06.
For the SPX, it is at 1080.15. On Thursday, October 8,
the SPX closed at 1065.48, 1.4% below resistance and the
SPY closed at $106.77, and 1.2% below resistance.
An intra-day high above these levels is not enough. Both
the SPY and SPX must make a decisive close above them.
The next few trading days are crucial.
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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but there is no guarantee that future results will be profitable. |
