What Happened
to the Rally?
Asks Market Timer Frank Kollar
December 18, 2009 (FinancialWire) (By Frank Kollar)
Both the S&P 500 Index (SPX) and it’s tracking
ETF the S&P Deposit Receipts (NYSE: SPY) have been
unable to surpass important resistance for five weeks.
Rallies depend on many factors and momentum is one of
them. When the major indexes are unable to push above important
resistance, in this case the 50% retracement of the entire
2008-2009 bear market decline, short sellers and profit
takers will eventually step in and take those markets down.
Resistance has now held since mid-November and this is
during a normally bullish time of the year. For the SPX,
the 50% retracement level is at 1119.31 and for the SPY
it is at 112.31
Next week is usually considered the most bullish week
of the year with holiday spirits taking the markets higher.
If we do not see these levels broken during that week,
we will be looking for declines and considerably lower
lows ahead.
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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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. |
