How High Can S&P
500 Go? Asks Market Timer Frank Kollar
January 15, 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, and have closed higher on eight of the last
nine trading days.
There is no question that traders and investors are looking
at the tea leaves and seeing an improving economy plus
higher stock market prices ahead.
But all rallies hit levels of resistance that either stop
them or at least result in a correction.
For the SPX, resistance is at 1226.10, the 61.8% retracement
level for the entire bear market decline. This is 6.8%
higher than Thursday’s January 14 close. For the
SPY, resistance is at $122.98, also the 61.8% retracement
for the bear market decline, This is 7.0% higher than Thursday’s
January 14 close.
In the financial markets, the 61.8% retracement level
is almost always tough to surpass. If it is surpassed,
the rally typically will move considerably higher. If not,
we could see a correction begin at or near these levels.
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. |
