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S&P 500 Index (SPX) at Critical Support

|Includes: SPDR S&P 500 Trust ETF (SPY), SPY

June 25, 2010

Both the S&P 500 Index (SPX) and its tracking ETF the S&P Deposit Receipts (NYSE: SPY) are at do-or-die support levels.

There have been more than a few bullish indicators flashing buy signals over the past several weeks, yet this week the stock market has done nothing but decline.

Those declines have taken the SPX right to critical support at 1074. This is the 61.8% retracement of the entire June rally and needs to hold. If broken in coming days, look for another test of the prior lows at SPX 1050.

The declines have also taken the SPY right to critical support at 107. This is also the 61.8% retracement of the entire June rally and needs to hold. If broken in coming days, look for another test of the prior lows at SPY 107.

The SPX and SPY are now below their 200-day moving averages, another negative hurdle for the stock market to deal with.

We need a rally and close above SPX 1117 and SPY 112 for the market to get back on track.

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



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