June 5, 2009 (FinancialWire) (By Frank Kollar) — The S&P 500 SPDRs (NYSE: SPY) have surpassed a major resistance level and signaled a new bull market lies ahead.

In Elliott Wave Theory, a new bull market signal is issued when the stock market surpasses the prior wave 4 high after a 5 wave decline. The entire 2008-2009 bear market constituted a long 5 wave decline.

The wave 4 high occurred on January 5, 2009, at $93.86 and marked the start of the final wave 5 decline ending in March at the bear market bottom.

After a two month rally, the SPDRs reached and tested those prior wave 4 highs in early May but failed to surpass them and reversed lower. A second retest resulted in a breakout on Monday, June 1.

That breakout above the wave 4 highs is an Elliott Wave Bull Market Signal.

If we do move lower, initial strong support should be found around SPX 848, which is the 50-day moving average for this big cap index (for the SPY the 50-day moving is at about $85.00).

(Disclosure: The http://www.fibtimer.com ETF Strategy has a position in the S&P 500 SPDRs.)

The Investrend Economics Calendar lists Employment Report for May (10 a.m.), Consumer Credit for April (2 p.m.).

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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 38 advancers versus 12 decliners. Advancers were led by Novavax, Inc. (NASDAQ: NVAX) up 74.33%, Wind River Systems, Inc. (NASDAQ: WIND) up 47.00%, Keycorp (New) (NYSE: KEY) up 19.57%, American International Group In (NYSE: AIG) up 11.56%, Micron Technology Inc. (NYSE: MU) up 10.66%, Palm, Inc. (NASDAQ: PALM) up 9.21%, Financial Bull 3x (NYSE: FAS) up 8.66%, Fifth Third Bancorp (NASDAQ: FITB) up 7.36%, Alcoa, Inc. (NYSE: AA) up 6.16%. Decliners followed Odyssey Marine Exploration, Inc (NASDAQ: OMEX) down 42.89%, Financial Bear 3x (NYSE: FAZ) down 8.70%.

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