Market Outlook NDX for Nov 21st '07

Dominant TF: Daily, but mostly 10 and 15 mins charts
Swings: UP-DN-UP (from DN-DN-DN)
Market direction: Congestion to down. Behaviour on 2000 will be key.

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. Reading the 10 mins chart is very simple with a significance level of 94%

Interpretation very similar as yesterday's

60mins: more or less same trading range [2000-2060] with lower bias
Definite congestion ahead. Bias remains down, so behaviour on 2000 is obviously key.

Daily: Possible trading range with lower bias.
MTFS and Entropy both look fairly bearish and 2000 had to be tested. We indeed have conflicting information arising from the MM level showing a reinforced support level. The MTFS white line has started showing some inflexion, so there will be more fighting on the 2000 support level. Please note that the MTFS pattern has to complete with lines joining almost always in oversold territory. This indicates a potential to go somewhat lower, or at least a long battle (3 or 4 days min).
Further down the line: If 2000 breaks, we have a possible 1935 target later on. On the other hand, should the latest pivot point hold which is quite possible since 2000 is now strong support, we have our AutoFib showing a potential recovery to levels we have seen recently (target levels displayed on picture).

Note: LEntBin has been momentarily added to the chart. It helps assess the importance of the current drop in Entropy in relation to historical levels. We can see that the current level -5.33 is in fact not so alarming.

Weekly: congestion to mildly down - 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 retracement level, so it could certainly come a little more down. In such case one cannot ignore that breaking the current channel would accelerate into serious selling pressure, but no panic just yet. 2000 is still holding...