Big Move in Stock Market Imminent
Says Market Timer Frank Kollar
February 26, 2010 (FinancialWire) (By Frank Kollar)
This week has seen huge swings in the stock market, with
most major indexes marking better than 1% intra-day moves
each day. The S&P 500 Index (SPX) and it’s tracking
ETF the S&P Deposit Receipts (NYSE: SPY) have had a
sell off Tuesday, followed by a rally Wednesday, followed
by a sell off Thursday that reversed intra-day and finished
almost unchanged.
If those on the sidelines think the experts are in the
know, they certainly could not be right with such huge
swings, in opposite directions, day after day.
In our work we see volatility as the precursor to break
out moves either to the upside or downside.
Last week we wrote that; “both the SPX and SPY closed
just below the critical Fib 61.8% retracement level for
this correction. This typically marks the do-or-die point
for rallies. A close above leads to further advances and
a reversal leads to a resumption of the correction.”
We have not had the reversal, and the stock market remains
just below this critical resistance level. For the SPX
the critical retracement level is at 1109.98 and for the
SPY the critical retracement level is at $111.10.
Thursday’s huge intra-day loss, that reversed and
closed almost unchanged for the day, points to more strength
to the upside ahead. Any strength should push these indexes
above the critical resistance levels. Thursday’s
mid-day reversal to the upside was on a day when bad news
dominated the markets. That is bullish.
If those levels are surpassed, look for a run to, and
a test of, the January highs.
The Fibtimer.com (http://www.fibtimer.com)
ETF Timing Strategy has a position in the S&P 500 SPDRS
.
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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