June 19, 2009 (FinancialWire) (By Frank Kollar) — The S&P 500 SPDRs (NYSE: SPY) finally pulled back this week as traders took profits after a nearly non-stop three month advance.

On June 1 the SPDRs surpassed their 200-day moving average for the first time in well over a year. The market declines over the past week reached right to that moving average by the close on Wednesday, and on Thursday the market reversed and moved higher.

Is this the end of the correction? If we continue higher on Friday, June 19, it will end the week on a strong note and we can probably look forward to gains early next week, barring a bad news event. However, a close below the 200-day moving average would likely result in lower lows.

The 200-day moving average is currently at SPY 90.86. Just below this level is the next support, the 50-day moving average at SPY 89.84.

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).

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

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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 24 advancers versus 25 decliners and one unchanged. Advancers were led by Star Scientific, Inc. (NASDAQ: STSI) up 9.73%, Fifth Third Bancorp (NASDAQ: FITB) up 6.31%. Decliners followed Cell Therapeutics, Inc. (NASDAQ: CTIC) down 7.09%.

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Happy Birthday: Blaise Pascal, Moe Howard, Guy Lombardo, Lou Gehrig, Alan Cranston, Louis Jourdan, Niels Bohr, Elaine “Spanky” McFarlane, Ann Wilson, Kathleen Turner, Paula Abdul.

Today in History: The first baseball game under recognizable modern rules was played in 1846 in Hoboken, New Jersey, United States. Maximilian I of the Mexican Empire was executed by a firing squad in 1867. The eight-hour work day was established in 1912 in the United States. Lou Gehrig was diagnosed in 1939 with “Lou Gehrig’s disease” on his 36th birthday. NASCAR sanctioned the first “strictly stock” race in 1949, which will evolve into the modern Nextel Cup.

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