Critical Support Holds for S&P 500 Index (SPX) & S&P Deposit Receipts (NYSE: SPY) Says Market Timer Frank Kollar
May 28, 2010 (FinancialWire) (By Frank Kollar)
Both the S&P 500 Index (SPX) and its tracking ETF
the S&P Deposit Receipts (NYSE: SPY) tested critical
support levels this week and so far those levels are holding.
For the SPX support was at the February 5 intra-day lows
at 1044.50. On Tuesday, May 25, the SPX reached 1040.78
intra-day but finished that day with a close well above
1044.50.
For the SPY support was at the February 5 intra-day lows
at $104.58. On Tuesday, May 25, the SPX reached $104.38
intra-day and finished with a close well above $104.58.
Though the declines these past weeks have been steep,
and several short term support levels have fallen along
the way, this is the one support level that must not fail.
Should the SPX close below 1040.78 and the SPY close below
$104.38, we will be looking for a new leg down that could
last weeks to months or more.
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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