Market Outlook RUT for Oct 17th '07

Dominant TF: Daily & Weekly
Swings: DN-UP-UP
Market direction: congestion to down initially. Overall trend is still up, but support must be found first.

60mins: Congestion to down, but probably at a slow pace.
It is interesting to see that the 828 pivot level may turn soon into a resistance level. AdStoK and Entropy certainly point lower, so we should maybe look for a lower support level, 820 first, but much stronger at 813.

Daily: Congestion to down at first. Overall direction unchanged yet but new support will have to be found.
No new information:
AdStoK is weaker and lines are crossing, indicating a definite slowdown. The red bar confirms also the diagnostic. We could certainly look for support between 808 (Fib) and 812 (MM) in the next few days.
The high volatility environment seems to accelerate movements in either direction, however Entropy is still fairly high so this down move should be fairly controlled. No reason just yet to believe it will go lower than those levels unless some economic news shock the system of course.

Weekly: mildly up until...
It was clear RUT would hit 851 (highs + Fib) but what is now coming next? AdStoK and Entropy do not point lower, so one should not panic just yet. RUT is likely to hold or even possibly go higher. Strong MM resistance is still 875.