- Analytical Commentary -

March 5, 2010 (FinancialWire) (By Frank Kollar) — Both the S&P 500 Index (SPX) and its tracking ETF the S&P Deposit Receipts (NYSE: SPY) rallied above important resistance levels this week.

Last week we wrote: “Thursday’s huge intra-day loss, that reversed and closed almost unchanged for the day, points to more strength to the upside ahead. Any strength should push these indexes above the critical resistance levels. Thursday’s mid-day reversal to the upside was on a day when bad news dominated the markets. That is bullish.”

On Monday the SPX closed above 1109.98 the 61.8% retracement of the January to February declines and SPY closed above 111.10 the 61.8% retracement of the January to February declines.

Typically when the 61.8% retracement level is surpassed, the index, ETF or stock, continues higher to test the prior high. In this case that is the rally highs achieved in early January.

The targets for this advance are: 1115.06 the closing high for SPX and $1115.06 the closing high for SPY.

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

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

The FirstAlert(tm) “Money Index” is an indicator of the depth of market direction or indirection. While not always including the same stocks, the combined NYSE, NASDAQ and AMEX 25 Most Actives and combined NYSE, NASDAQ and AMEX greatest Percentage Losers and Percentage Winners (weighted against pure monetary loss/gain) indicate the direction in which the mass of money is flowing, as well as the general focus of the market. The most recently published FirstAlert(tm) Money Index Synopses are accessible via FinancialWire.net (at http://www.financialwire.net/?s=index+synopsis).  The data providing the basis for the FirstAlert(tm) Money Index is provided courtesy of Stock Smart, and complete Stock Smart charts and closing summaries are directly accessible via a dedicated Investrend.com webpage (at http://www.investrend.com/fa-index).

The FirstAlert(tm) Economics Calendar lists Employment Report for February (8:30 a.m.), Consumer Credit for January (3 p.m.), U. of Michigan Consumer Sentiment Index for February (9:55 a.m.), Existing Home Sales for January (10 a.m.), Farm Prices for January (3 p.m.).

The FirstAlert(tm) Events Calendar showcases MATK Investor Day; PUDA, CNX, PCX at Brean Murray, Carret & Co. Global Resources & Infrastructure Conference.

FirstAlert(tm) Website of the Day: http://antwrp.gsfc.nasa.gov/apod/archivepix.html

Quote of the Day: “When I began playing the game, baseball was about as gentlemanly as a kick in the crotch.” Ty Cobb

Today is: World Day of Prayer.

Happy Birthday: King Henry II of England, Charles Goodnight, Howard Pyle, Sir Rex Harrison, Dean Stockwell, Andy Gibb.

Today in History: England King Henry VII issued letters patent in 1496 to John Cabot and his sons, authorizing them to discover of unknown lands. Five Americans, including a black slave named Crispus Attucks, and a boy were killed in 1770 by British troops in what would be called the Boston Massacre, helping start the American Revolutionary War five years later. Samuel Colt made the first production-model revolver (.34-caliber) in 1836. A court of impeachment was organized in 1868 in the United States Senate to hear charges against President Andrew Johnson. George Westinghouse patented the air brake in 1872. Nikola Tesla, in Electrical World and Engineer, described in 1904 the process of ball lightning formation. President Franklin D. Roosevelt declared a “bank holiday” in 1933, closing all United States banks and freezing all financial transactions. British pound fell below $2 U.S. for the first time in 1976. Earth satellites recorded in 1980 gamma rays from remnants of supernova N-49.

[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 committed to serving the financial community through true journalism and providing relevant resources to investors. Standards-based, independent equity research on numerous public companies is available through the Investrend Research Syndicate (http://www.investrend.com/reports) written by FIRST Research Consortium (http://www.investrend.com/FIRST) member-providers. Free annual reports and company filings for companies mentioned in the news are available through the Investrend Information Syndicate (at http://investrend.ar.wilink.com/?level=279). FinancialWire(tm), in cooperation with the Investrend Broadcast Syndicate, also provides complete, daily conference call and webcast schedules as a service to shareholders and investors via the FirstAlert(tm) Network’s “FirstAlert(tm) Daily” (http://www.financialwire.net/news-alerts/).

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) website  (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

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.