- Technical Commentary -

September 1, 2009 (FinancialWire) (By Frank Kollar) — Shares of Technology Select Sector SPDR (NYSE: XLK) have reached a critical level that will be tested over coming days.

Technology SPDR reached the 61.8% retracement resistance level of the May 2008 through November 2008 bear market decline last Friday.

Typically the 61.8% level, at $20.72 for Technology SPDR, is a make or break point in a rally. A definitive close above this level would forecast continued higher highs ahead, while a reversal from this level would point to at least a corrective wave lower.

If the $20.72 level is surpassed, traders can look for a run to the next resistance at $22.85. If shares trade lower, support is at the $17.15 level.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in Technology Select Sector SPDR.

Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market, his bearish positions resulted in gains exceeding 100 percent, all achieved by trading trends.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

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