S&P 500 Index (SPX) & S&P Deposit Receipts (NYSE: SPY) Still Below 200 Day Average Says Market Timer Frank Kollar

June 4, 2010 (FinancialWire) (By Frank Kollar)

Both the S&P 500 Index (SPX) and its tracking ETF the S&P Deposit Receipts (NYSE: SPY) continued to gain ground but have not been able to close above their 200-day moving averages.

The 200-day average is, for many, the dividing line between bear market and bull market. Even with Wednesday’s huge rally followed by gains again on Thursday, this average has not yet been surpassed.

There is little doubt the SPX and SPY have found support at their May 25 lows. Since that date the markets have moved generally higher. But resistance levels are the confirmation signals needed to confirm advances.

The SPX needs to make a decisive close above 1106.26 and the SPY needs to close above 110.83 to confirm this advance. This is only one indicator to be sure and no indicator is right all the time, but right now the 200-day average is important.

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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