Bullish Potential for the S&P 500 Index (SPX) and S&P Deposit Receipts (NYSE: SPY)
Says Market Timer Frank Kollar
July 30, 2010 (FinancialWire) (By Frank Kollar)
Both the S&P 500 Index (SPX) and its tracking ETF
the S&P Deposit Receipts (NYSE: SPY) took it on the
chin these last two days, but there are many reasons to
be looking for higher highs ahead.
Last week the SPX broke above a declining trend resistance
line that has held since late April. This line can be recreated
by drawing a line connecting all the failed rally highs
from April to mid-July. This break above resistance is
bullish.
The 50-day moving average for the SPX has also held well
above the SPX since May 5, immediately after the selling
began. The SPX is now well above this short-term average.
The SPX reached its 200-day moving average on Monday July
26. This is likely the reason for the selling since that
date.
A close above SPX 1114.25 or SPY 111.63 would be very
bullish. If this occurs, look for the SPX to quickly test
resistance at 1131.23, the prior June rally high.
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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