Editorial Commentary

June 12, 2009 (FinancialWire) (By Frank Kollar) — The S&P 500 SPDRs (NYSE: SPY) continue their climb with new 2009 highs reached in intra-day trading on Thursday, June 11, though not a new closing high. Looking for a short-term target seems a prudent thing to do considering this advance has now spanned three months.

The 50% retracement of the last leg down in the bear market, spanning August 28, 2008 to March 9, 2009, is about as short term as we can find. That 50% resistance level is at SPY 98.80 about 4.2% above current levels and a likely candidate for the start of some selling.

But the real critical resistance level, one that is likely to result in strong selling if it is reached soon, is the Fib 61.8% retracement at 106.22, about 12.0% above current levels. It may be hard to believe the S&P SPDRs could still move another 12% higher without a correction first, and maybe they won’t, but if we reach SPY 106.22, watch out below.

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 Events Calendar showcases FISV, IGR, KIM at Information Management Network US Real Estate Opportunity & Private Fund Investing Forum; OREX at ENDO 2009 Annual Meeting.

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 34 advancers versus 14 decliners and two unchanged. Advancers were led by Level 3 Communications, Inc. (NASDAQ: LVLT) up 24.06%, American Capital, Ltd. (NASDAQ: ACAS) up 21.38%, Human Genome Sciences, Inc. (NASDAQ: HGSI) up 17.71%, Palm, Inc. (NASDAQ: PALM) up 12.01%, Evergreen Solar, Inc. (NASDAQ: ESLR) up 11.16%, Regions Financial Cp (NYSE: RF) up 9.25%, Bk Of America Cp (NYSE: BAC) up 8.26%, Keycorp (NYSE: KEY) up 6.61%, Alcoa Inc (NYSE: AA) up 6.35%. Decliners followed Satyam Computer Serv (NYSE: SAY) down 12.96%, Cell Therapeutics, Inc. (NASDAQ: CTIC) down 7.23%, Unitedhealth Group (NYSE: UNH) down 6.53%.

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

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

Quote of the Day: “Laziness may appear attractive, but work gives satisfaction.” Anne Frank

Today is: Loving Day.

Happy Birthday: Irwin Allen, Samuel Z. Arkoff, George H. W. Bush, Vic Damone, Anne Frank, Jim Nabors, Marv Albert, Chick Corea.

Today in History: Joan of Arc led the French army in 1429 in their capture of the city and the English commander, William de la Pole, 1st Duke of Suffolk in the second day of the Battle of Jargeau. British general Thomas Gage declared martial law in Massachusetts in 1775. The British offered a pardon to all colonists who lay down their arms. There would be only two exceptions to the amnesty: Samuel Adams and John Hancock, if captured, were to be hanged. The Comstock Lode was discovered near Virginia City, Nevada, in 1859. Senator Huey Long of Louisiana made the longest speech on Senate record in 1935, lasting 15.5 hours and using 150,000 words. The Baseball Hall of Fame and Museum was dedicated in Cooperstown, New York, in 1939. Future essayist Anne Frank received a diary for her thirteenth birthday in 1942. Bryan Allen flies the human-powered Gossamer Albatross across the English Channel in 1979. U.S. President Ronald Reagan publicly challenged Mikhail Gorbachev in 1987 to tear down the Berlin Wall at Brandenburg Gate.

[FirstAlert^TM was created by Gayle Essary, founder of Investrend Communications, Inc., parent of Investrend Information (http://www.investrendinformation.com). The opinions expressed in FirstAlert^TM do not necessarily reflect the opinions of Investrend.]

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) web site (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Free annual reports for companies mentioned in the news are available through the Free Annual Reports Service (http://investrend.ar.wilink.com/?level=279).

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.