Market Outlook SPY for Oct 23rd '07

Dominant TF: Daily and 60mins
Swings: DN-DN-UP
Market direction: Congestion to Down. Support should be found soon.

60mins: Congestion to down.
There is no indication that yesterday's recovery will take SPY much higher in the short term. A congestion is likely.MTFS had an early crossover which is generally not indicative of a strong recovery, but the lines gradients are now looking better. We shall however watch how negative entropy is dissipating over the next few bars.

Daily: Profit taking until support is found (150 or lower...)
The 150 support level proved strong enough to stop the fall, but MTFS looks bearish, and bars are also decidedly red. The correction is maybe not over yet, and we have to possibly watch lower Fib retracement levels.

Weekly: Congestion, but caution: significance level is ridiculously low.
For the time being, indicators still point very slightly upward, but the red bar is more reactive and negates any remaining positive momentum in the short term. We can 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 (60mins and daily).