Stock Market Rally Alive and Well Says Market Timer Frank Kollar

January 8, 2010 (FinancialWire) (By Frank Kollar)

Both the S&P 500 Index (SPX) and it’s tracking ETF the S&P Deposit Receipts (NYSE: SPY) are at new rally highs, both have surpassed important resistance levels, both have higher highs ahead.

A few weeks ago we wrote “What Happened to the Rally?” Apparently it was alive and well, but waiting for the year end holiday period to kick start it back into action.

The 50% retracement of the entire 2008-2009 bear market decline was at SPX 1119.31 and for the SPY at 112.31. These resistance levels held the advance in check from mid-November until finally they were surpassed during the two week holiday period.

In our chart studies we watch support and resistance levels closely. When broken in either direction, the markets tend to move to the next support or resistance level.

In this case, the SPX should continue higher to the 61.8% retracement level at 1226.10 which is 7.4% higher than Thursday’s January 7 close. The SPY should make it to $122.98.

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.

Go to previous Press Releases & Trading Notes.