Stock Market Hits a Wall!
Says Market Timer Frank Kollar
January 22, 2010 (FinancialWire) (By Frank Kollar)
Both the S&P 500 Index (SPX) and it’s tracking
ETF the S&P Deposit Receipts (NYSE: SPY) have pulled
back dramatically this week, taking a 2+% hit on Thursday,
January 21.
Is this the end of the huge advance that began in March,
2009?
It is far too early to state that the advance is over.
Typically pull backs start with heavy selling and that
is just what happened in the June 15 correction, plus all
of the minor corrections since on Sept 1, Oct 1 and also
on Oct 26.
Yet each of these overwhelmingly bad days were eventually
surpassed when the advance reasserted itself in following
weeks.
Certainly it would not be a good idea to enter new bullish
positions here. If this is a typical correction there will
likely be three waves in an ABC decline before a bottom
is reached. We are only in Wave A now. After this pattern
completes, and after a bullish reversal day, it would be
time to buy.
If in fact we are headed for a big decline as some market
forecasters are stating, major support levels will fall
first, such as at SPX 1088 and SPY 108.8. After this is
critical support at SPX 1036 and SPY 103.50.
Look for a normal correction in coming weeks followed
by resumption to the upside, but be ready to take action
if we start breaking below critical support 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. |
