Higher Highs Ahead for S&P 500 Index (SPX) & S&P Deposit Receipts (NYSE: SPY) Says
Market Timer Frank Kollar
June 18, 2010 (FinancialWire) (By Frank Kollar)
Both the S&P 500 Index (SPX) and its tracking ETF
the S&P Deposit Receipts (NYSE: SPY) are now in BUY
territory and should reach higher highs in coming
weeks.
The SPX has had four better than 9 to 1 up volume vs.
down volume days on the NYSE. Such days are uncommon and
are typically followed by a substantial advance. We look
for two such days in a two month period. We have had four
such days, the last occurring on Tuesday, June 14, in only
four weeks.
The SPX and SPY are now above their 200-day moving averages.
The average stopped the last advance back on June 3. This
time we have held above it for three days.
Both the SPX and SPY have a well defined double bottom
in place with lows occurring on May 25 and June 8. Those
lows also stopped right at the correction lows of February
5. That creates a solid technical bottom for the stock
market.
The SPX rallied through 1100 with ease. This round number
might have slowed the rally down but did not.
On several days this week and especially on Thursday,
June 17, the stock market had bad news. Thursday’s
news was higher than expected new weekly unemployment filings.
Yet stocks were able to reverse off midday lows and rally
to a positive close.
The SPX will reach strong resistance at 1151 and the SPY
at 115. This is the 61.8% retracement level for the April
to May declines for each. This resistance, if surpassed,
would likely result in a test of the April 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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