June 26, 2009 (FinancialWire) (By Frank Kollar) — The S&P 500 SPDRs (NYSE: SPY) dropped to below their 50-day moving average and 200-day moving average early this week. Both of these averages are watched closely be investors for signs of strength and weakness in stocks.

But on Thursday, June 25, the SPDRs reversed early day losses and rallied hard right into the close. A two percent gain at any time is a good day but Thursday’s gain reversed six days of lower prices and pushed the SPDRs back above those important moving averages.

To be certain there needs to be follow-through. Look for a continuation of the rally on Friday or early next week.

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.

The Investrend Economics Calendar lists Personal Income & Consumption Spending for May (8:30 a.m.), U. of Michigan Consumer Sentiment Index for June (9:55 a.m.).

The Investrend Events Calendar showcases no events today.

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 11 decliners and one unchanged. Advancers were led by China Architectural Engineering (NASDAQ: CAEI) up 77.34%, Bed Bath & Beyond Inc. (NASDAQ: BBBY) up 9.48%. Decliners followed Insmed, Inc. (NASDAQ: INSM) down 53.65%, Paychex, Inc. (NASDAQ: PAYX) down 6.18%.

The Investrend Poll Question of the Day will return.

Investrend Website of the Day: http://www.indiana.edu/~librcsd/etext/piper/

Quote of the Day: “Politics is the art of looking for trouble, finding it whether it exists or not, diagnosing it incorrectly, and applying the wrong remedy.” Ernest Benn

Today is: Take Your Dog To Work Day.

Happy Birthday: Abner Doubleday, Lord Kelvin, Pearl S. Buck, Peter Lorre, Jay Silverheels, Chris Isaak, Gretchen Wilson, Derek Jeter.

Today in History: According to legend, the Pied Piper lured 130 children of Hamelin away in 1284. Richard III became king of England in 1483. President Franklin D. Roosevelt signed the Federal Credit Union Act in 1934, which establishes credit unions. John F. Kennedy spoke the famous words “Ich bin ein Berliner” on a visit to West Berlin in 1963. In 1977 in Indianapolis, Indiana, Elvis Presley gave his last concert.

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