May 15, 2009 (FinancialWire) (By Frank Kollar) — Last week the S&P 500 Index (SPX) touched its January 2009 rally highs and immediately reversed to the downside. This may have been the start of a correction that has further to go on the downside. Note that the S&P Deposit Receipts (NYSE: SPY) can be traded as a proxy for the SPX.

The stock market advance that began in early March has moved higher virtually unscathed by any profit-taking. While this is good news for those wishing to recover some of the steep losses incurred in the bear market, it is unlikely that the markets will continue higher without pause.

Last week’s reversal from the January rally highs started the first bout of profit-taking that lasted more than two days. The odds favor a continued decline until investors cannot resist the lower prices.

Likely this will occur around the 200-day moving average for the SPX, currently at about SPX 872 (for the SPY it is at about $85.46). Should this level be broken on the downside, the SPX could decline to SPX 800 (for the SPY it is at about $80.00).

The Investrend Earnings Calendar features Teekay Tankers Ltd. (NYSE: TNK), expected at $0.59 a year ago versus $0.25 a year ago; Abercrombie & Fitch (NYSE: ANF), expected at $-0.13 versus $0.69 a year ago; JCPenney (NYSE: JCP), expected at $0.08 versus $0.54 a year ago; Multi-Color Corp. (NASDAQ: LABL), expected at $0.23 versus $0.27 a year ago.

The Investrend Economics Calendar lists Consumer Price Index (CPI) for April (8:30 a.m.), Empire State Manufacturing Index for May (8:30 a.m.), Treasury Int’l Capital Flows (9 a.m.), Industrial Production & Capacity Utilization for April (9:15 a.m.), Michigan Consumer Sentiment Index for May (9:55 a.m.).

The Investrend Events Calendar showcases M Annual Meeting of Shareholders; MFE Investor Day.

The Investrend Money Index is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ 50 Most Actives indicate the direction in which the mass of money is flowing. Last session’s trading showed 36 advancers versus 13 decliners and one unchanged. Advancers were led by Genworth Financial (NYSE: GNW) up 20.24%, Hartford Fin Svc (NYSE: HIG) up 17.44%, Atmel Corporation (NASDAQ: ATML) up 17.02%, Amer Intl Group Inc (NYSE: AIG) up 15.00%, Las Vegas Sands Corp (NYSE: LVS) up 9.02%, Financial Bull 3x (NYSE: FAS) up 8.56%, Brocade Communications Systems, (NASDAQ: BRCD) up 8.50%, Fifth Third Bancorp (NASDAQ: FITB) up 7.12%, Huntington Bancshares Incorpora (NASDAQ: HBAN) up 7.03%, Wells Fargo & Co New (NYSE: WFC) up 6.16%, Ultra Real Estate Pr (NYSE: URE) up 6.12%. Decliners followed Cell Therapeutics, Inc. (NASDAQ: CTIC) down 11.02%, M G M Mirage (NYSE: MGM) down 10.80%, Financial Bear 3x (NYSE: FAZ) down 9.24%, Ultrashort Real Esta (NYSE: SRS) down 6.64%, Ultrashort Financial (NYSE: SKF) down 6.00%.

Vote in the Investrend Poll Question of the Day at Investrend Information (http://www.investrendinformation.com).

Investrend Website of the Day: http://www.smothersbrothers.com/

Quote of the Day: “Avant-garde music is sort of research music. You’re glad someone’s done it but you don’t necessarily want to listen to it.” Brian Eno

Today is: Peace International Day of Families, Peace Officer Memorial Day.

Happy Birthday: L. Frank Baum, Pierre Curie, Joseph Cotten, James Mason, Tenzing Norgay, Eddy Arnold, Ken Venturi, Anna Maria Alberghetti, Madeleine Albright, Trini López, K.T. Oslin, Brian Eno, Chazz Palminteri, Mike Oldfield, Ahmet Zappa.

Today in History: Johannes Kepler confirmed in 1618 his previously rejected discovery of the third law of planetary motion, which he first discovered on Mar.8 but soon rejected after some initial calculations were made. President Abraham Lincoln signed a bill into law in 1862 creating the United States Bureau of Agriculture (later renamed USDA). Woman’s suffrage: In New York, Susan B. Anthony and Elizabeth Cady Stanton formed the National Woman Suffrage Association in 1869. Las Vegas, Nevada, was founded in 1905 when 110 acres, in what later would become downtown, are auctioned off. In 1911, the United States Supreme Court declared Standard Oil to be an “unreasonable” monopoly under the Sherman Antitrust Act and orders the company to be dissolved. The US Post Office Department (later renamed the USPS) began the first regular airmail service in the world in 1918. The animated short Plane Crazy, featuring the first appearances of Mickey and Minnie Mouse, was released in 1928. The Smothers Brothers gave their first concert in Carnegie Hall in New York City in 1964. President Richard Nixon appointed Anna Mae Hays and Elizabeth P. Hoisington the first female United States Army generals in 1970.

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