Market Outlook NDX for Oct 17th '07

Dominant TF: Daily and low time frames (15mins)
Swings: DN-UP-UP
Market direction: Congestion but upward bias still valid (Daily).

Note: A variation to the AdStoK white line is plotted (test). It provide a slightly higher memory effect in the indicator.

60mins: Congestion with a down bias.
No new information yesterday. The same trading range is expected.

Levels to watch: around 2120 (Fib at 2117 and MM at 2125). 2156 is pivot in lower time frames.


Daily: Congestion - Upward bias is still technically there but NDX is very overbought, so lower time frames must be watched carefully.
No new information:
AdStoK and Entropy are now showing some early signs of weakness, the bar has turned red and significance level is still the highest of all 3 on this chart.
There is however so much accumulated energy (in Entropy) that one cannot imagine a serious retracement right now, but one could certainly have a pause with some congestion and profit taking. This high volatility environment can also obviously accelerate movements in either direction, but that would take a few days to materialize.
Note: the new AdStoK White Line variation is higher, hence down-plays the effect of the current profit taking event.

Weekly: Mildly UP until resistance is found
Current congestion in lower time frames can slow down or stall the upward bias we still have.
Note that significance level on this time frame is falling, due to indicator divergence.