Market Outlook NDX for Oct 19th '07

Dominant TF: Daily and low time frames (15mins)
Swings: UP-UP-UP
Market direction: Probable Congestion. Watch 2188 key level, particularly on 15mins chart, for clues on forthcoming direction.

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

60mins: Congestion with some remaining upward bias.
As said yesterday, we've had a continuation of the upward bias within a [2156-2188] trading range, and we now reached the high end of that range. The pattern is completed and it is more difficult to gauge what is coming next. Behaviour around this level will determine forthcoming direction, and lower time frames do provide higher significance level and trading opportunities.

Daily: Congestion - Upward bias is still technically there but NDX is very overbought, so lower time frames must be watched carefully.
No new information:
MTFS and Entropy are now showing more signs of weakness. There is however still substantial 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 (same [2150-2200]range).
One cannot discard a development of a new pattern which in this high volatility environment could take just a few days to materialize.
Note: the new MTFS (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.