S&P 500 Index (SPX) and S&P Deposit Receipts (NYSE: SPY) Stall at Resistance Says Market Timer Frank Kollar
July 16, 2010 (FinancialWire) (By Frank Kollar)
Both the S&P 500 Index (SPX) and its tracking ETF
the S&P Deposit Receipts (NYSE: SPY) have reached their
respective 50-day moving averages. But they accomplished
that three days ago.
Since reaching this widely followed short term indicator,
the SPX and SPY have hardly moved. There has been a lot
of intra-day movement, but not above the 50-day average
at the close for the last three days.
Not only is the 50-day average a problem, but both the
SPX and SPY remain below their respective 200-day moving
averages too. The 200-day average is often used to identify
bull and bear markets.
Plus, the 50-day average is below the 200-day average.
This is a bearish indicator by any one’s measurement.
Lastly both the SPX and SPY remain below a declining trend
resistance line. This line is created by drawing a straight
line through the rally highs since April.
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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