Market Outlook NDX for Nov 29th '07

Dominant TF: Daily, but mostly 10 and 15 mins charts
Swings: UP-DN-DN (from UP-DN-DN)
Market direction: Recovery is yet to be confirmed.

You may have noticed over the last few days that i advised
about checking lower times frames, as something was boiling under the hood. Secondly, I mentioned yesterday that it would be worth taking a look at cycles. Of course, I have warned again that cycles must be analysed with a lot of caution, yet it seems to have proved right this time.

60mins: up, but check resistance level around 2095 then 2125
The 2030 pivot level disappeared at the open, and the 2060 didnt show much resistance either. Fractal levels are still about 31 points apart, and NDX gathered enough momentum to get the next resistance level (more significant on lower time frames). Current level can hower pause the recovery.
Indeed MTFS and Entropy are strong but 'half-way' through only. Recovery must therefore be confirmed. Again, it is recommended to follow the 15mins chart (Sig Level = 92%).

Daily: mildly up
I would suggest reading yesterday's commentary again.
A bounce was announced, but due caution was also expressed as such recovery could have started from a lower base. Having said that, cycles, AutoFib, and engaging looking at lower time frames should have made possible to be there on time.
Where do we go from here? The MTFS pattern is not bullish yet so it is essential to wait to see the recovery confirmed over the next few days. Such recovery after such an incredible day (+3%) will obviously slow down. It is likely that if/once 2125 is passed, NDX will likely return to the overall bullish trend and reach Fib targets.

Weekly: congestion to mildly up - low significance level.
Bounce on the lower end of the channel and 2000 support level should help NDX go a little higher.
This is however not a very significant time frame.


Reminder on cycles:
1) check error level is close to Lag128's optimal error level
(a visual check can do no harm either)
2) check shape of blue curve (quarter cycle phase advance) for a top/bottom
3) count bars (quarter cycle) to gauge potential forthcoming turnaround on cycle (magenta curve)
4) ALWAYS CHECK FOR SUPPORTING INFORMATION (MAINLY MM AND FIB)

NOTE: This genetic algorithm is VERY processing intensive so should only be applied to EOD charts