- Analytical Commentary -

March 12, 2010 (FinancialWire) (By Frank Kollar) — Both the S&P 500 Index (SPX) and its tracking ETF the S&P Deposit Receipts (NYSE: SPY) continue to rally but Thursday, March 11 was the day they broke out to new closing highs.

Breakouts must be seen as bullish, especially coming after a 10% decline in January to early February. So where to next?

When a resistance level is surpassed, or in this case a new high is made, we look to the next resistance level as the new target for the advance.

For the SPX, the next resistance level is the 61.8% retracement for the entire bear market decline at SPX 1226. That is 6.6% above Thursday’s close at 1150.24.

For the SPY, the next resistance level is the 61.8% retracement for the entire bear market decline at SPY 122.98. That is 6.5% above Thursday’s close at 115.45.

Disclaimer: 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.]

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The FirstAlert(tm) Economics Calendar lists Retail Sales for February (8:30 a.m.), U. of Michigan Consumer Sentiment Index for March (9:55 a.m.), Business Inventories for January (10 a.m.).

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Today in History: Witiges, king of the Ostrogoths ended his siege of Rome in 538 and retreated to Ravenna, leaving the city in the hands of the victorious Roman general, Belisarius. Coca-Cola was sold in bottles for the first time in 1894. The Girl Guides (later renamed the Girl Scouts of the U.S.A) were founded in the U.S. in 1912. The future capital of Australia was officially named Canberra in 1913. Moscow became the capital of Russia again in 1918 after Saint-Petersburg had held this status for 215 years. In California, the St. Francis Dam failed in 1928, killing 400 people. Mahatma Gandhi in 1930 led a 200-mile march known as Dandi March to the sea in defiance of British opposition, to protest the British monopoly on salt. The Dennis the Menace comic strip appeared in newspapers across the U.S.A for the first time in 1951.

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