Market Outlook NDX for Nov 19th '07

Dominant TF: Daily, but mostly 10 and 15 mins charts
Swings: UP-DN-UP
Market direction: congestion to down.

I repeat the same caveat: Dominant time frames are now shorter intraday time frames , so obviously only users of the TS technique can fully appreciate current dynamics. The 2015.63 support level held, and the 2031 pivot level also held when tested early afternoon, giving bulls some hope the worst is over. The day ended on a high note at 2048.

60mins: [2031-2063] trading range at first
Significance level is declining at this time frame. The MTFS pattern only indicates a trading range with a slight up bias. A graphical pattern should prevail (pennant or MM level breakout)

Daily: Down, then possible trading range.
MTFS and Entropy both look quite bearish and as expected 2000 had to be tested (low 2006). We however here have conflicting information arising from the MM level which shows a reinforced support level. The MTFS white line has started showing some inflexion, so there will be some fighting going in and a a trading range with a lower bias is likely at first.Please note that the MTFS pattern has to complete with lines joining almost always in oversold territory. This indicates a potential to go lower. If 2000 breaks, we have a possible 1935 target later on. On the other hand, should the latest pivot point hold we have our AutoFib showing a potential recovery to levels we have seen recently (target levels displayed on picture).

Weekly: congestion to mildly down - very low significance level.
We knew we had to watch for that growing divergence, and Entropy peaking. Now, there is still no overall change in direction and this profit taking is only healthy after such a bull run. We have recurrence of the 1935 level, so it could certainly retrace a little more. Speed is however difficult to anticipate in this high vol environment.Again significance level is so low one should not jump to conclusions too quickly.