S&P 500 Index (SPX) Below Critical Support Says Market Timer Frank Kollar
July 2, 2010 (FinancialWire) (By Frank Kollar)
Both the S&P 500 Index (SPX) and its tracking ETF
the S&P Deposit Receipts (NYSE: SPY) are well below
critical support levels.
On Thursday, July 1, the start of the third quarter, the
intra-day lows broke below the correction lows reached
all the way back on October 2, 2009.
Anyone buying the S&P 500 Index since early February
1998 is underwater. That is twelve years after which the
SPX is lower than when that hypothetical investor bought
into the stock market.
What could be safer than buying 500 of the world’s
largest blue chip companies?
Thursday’s intra-day low was right at the 50% retracement
of the July 2009 to April 2010 stock market advance. That
50% level, which is acting as support, is at SPX 1009.80.
Right below of course is the SPX 1000 level. It would
generate huge bearish headlines if broken, and we would
agree that a break below SPX 1000 would be just that, hugely
bearish.
For the SPX support is at 101.06 with the SPY 100 level
right below.
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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