Market Outlook SPY for Oct 18th '07

Dominant TF: Daily (and 15mins)
Swings: UP-DN-UP
Market direction: Congestion. Upward bias still valid overall despite some profit taking.

60mins: Congestion to mildly down.
Erosion of SPY should continue, until support is truly found, first at 153.13, but possibly lower. Since the gradient is moderate, 153 is indeed more likely than 150 which seems much stronger though.
Note that lower time frames have high significance level and indicate an upward bias at first. Check 1562 as quite a strong resistance level on ES futures.

Daily: Profit taking until support is found.
AdStoK is so overbought with a white line declining, bars turning red, but Entropy is still holding fairly well. This is not indicative of any strong retracement in the near term, so profit taking should continue at a slow pace, possibly to 150 which would be tested for support and is a Fib PR1 level.

Weekly: mildly UP.
The Swing indicator is up, but the key swing price level is still close at this time frame, so the indicator could turn around again. For the time being, everything points upward. We can however see some divergence in AdStoK and a very low significance level at this time frame (divergence?), so this is at best only a background information at the moment, and one should certainly focus on lower time frames (15mins and daily).