Unsurpassable Wall at 1100 for S&P 500? Asks Market Timer Frank Kollar
December 4, 2009 (FinancialWire) (By Frank Kollar)
Both the S&P 500 Index (SPX), and it’s tracking
ETF the S&P Deposit Receipts (NYSE: SPY), appear to
have hit a seemingly unsurpassable wall in their quest
for new 2009 highs. For the SPX it is at 1100 and for the
SPY it is at 111.00.
The wall was hit over two weeks ago, on November 16, and
since that date both the SPX and SPY have attempted to
scale it some nine times. So far, neither has made a decisive
close above.
This is a very critical level; the 50% retracement of
the entire 2008-2009 bear market decline.
A decisive close above and the bulls would likely push
prices considerably higher. A failure here and we could
be in for weeks of corrective declines.
The period from Thanksgiving in November until New Years
Day on January 1 st is typically bullish for the stock
market.
It is now or never.
If the SPX and SPY cannot surpass these important levels
by year end, we would expect to see sellers take the markets
down early next year.
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. |
