Market Outlook SPY for Oct 10th '07

Dominant TF: Daily
Swings: UP-UP-UP
Market direction: Mildly UP at least until resistance is tested.

Note that SPY is the leading symbol in our index selection (S&P500, NDX and RUT).

60mins: neutral to mildly UP.
SPY reacted to the positive news with a new test of all time highs. AdStoK almost completed it V shape pattern, so we may have a decision point coming when lines join. Entropy has picked up again so one may reach 157.8 (Fib + MM) over the next few days. Current resistance at 156.25 is obviously still valid though.

Daily: mildly UP until resistance is tested.
Entropy is still quite high, and only slowly declining. AdStoK may soon show first signs of weakness as lines could cross shortly, but this probably won't translate into a retracement any time soon.
We now have to watch how the market attacks the current strong resistance level (July highs + MM + FIB (60mins)). Note that MM level is not as strong as same level in July.


Weekly: mildly UP.
The Swing indicator is now more firmly up, but the key swing price level is still close at this time frame.
Entropy is slowly looking better, and the trend should be at least mildly up until AdStoK lines cross.
So, for the time being, no visible change in market dynamics coming.
One will have to keep an eye on AdStoK when lines cross, as there is a chance of divergence in this indicator with lines joining at a lower level than prices (double top later on?).