- Technical Analysis -

November 13, 2009 (FinancialWire) (By Frank Kollar) — The S&P 500 Index (SPX), and its tracking ETF the S&P Deposit Receipts (NYSE: SPY), both reached new closing highs this week, but on Thursday, November 12, they reversed hard and closed back below their previous October rally highs.

The Nasdaq 100 Index (NDX) did not reach new rally highs, but it’s tracking ETF the Powershares QQQ Trust (NASDAQ: QQQQ) did reach new highs before also reversing lower on Thursday. The failure of the NDX to make new highs is a bearish divergence.

This brings up the potential scenario of a bearish double top in the major indexes. The next few days will hold the key to a new bull rally, or a continuation of the late October correction.

Interestingly, Monday’s huge rally had a bullish volume surge on the NYSE with 16 to 1 up vs. down volume. This is an unusual event that occurred several times in March, at the beginning of the 2009 stock market rally.

The stock market is at do-or-die levels here.

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 SPYDRs and the Powershares QQQ Trust.

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.

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).

[Go to http://www.financialwire.net/?s=frank+kollar to see more commentaries by Frank Kollar.]

The FirstAlert(tm) Economics Calendar lists International Trade for Septebmer (8:30 a.m.), Import/Export Prices for October (8:30 a.m.), U. of Michigan Consumer Sentiment Index for Nov. (9:55 a.m.).

The FirstAlert(tm) Events Calendar showcases ADX at American Association of Individual Investors Annual Conference; WMGI, DNDN, POZN, LLY Credit Suisse Healthcare Conference.

FirstAlert(tm) Website of the Day: http://www.whitehouse.gov/issues/health-care

Quote of the Day: “An actor is a sculptor who carves in snow.” Edwin Booth

Today is: Guininess World Record Day, World Kindness Day.

Happy Birthday: Edwin Booth, Robert Louis Stevenson, Jack Elam, Garry Marshall, Whoopi Goldberg, Vinny Testaverde, Jimmy Kimmel, Steve Zahn.

Today in History: English King Ethelred ordered in 1002 the killing of all Danes in England. The Denny Party landed at Alki Point in 1851, the first settlers of what would become Seattle, Washington. Collier’s magazine in 1909 accused U.S. Secretary of the Interior Richard Ballinger of questionable dealings in Alaskan coal fields. The American space probe, Mariner 9, became in 1971 the first spacecraft to orbit another planet, swinging into its planned trajectory around Mars without a hitch. In 1990, implementation of the World Wide Web began when Tim Berniers-Lee wrote the first web page on a NeXT workstation. Chicago Bears cornerback Nathan Vasher returned in 2005 a missed field goal 108 yards against the San Francisco 49ers, the longest play in NFL history.

[FirstAlert(tm) was created by Gayle Essary, founder of Investrend Communications, Inc., parent of Investrend Information. 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.