Dominant TF: 60mins & Daily
Swings: DN-UP-UP
Market direction: still mildly up.
I have mentioned again and again we were hovering around a key level with Swing indicators oscillating too often. Obviously it is not easy to pinpoint exactly when it will happen with a daily update, and lower intraday time frames have helped a lot.
60mins: Down until support is found around 2190 first.
As mentioned yesterday, when there are wild swings particularly after a Fed announcement, lower time frames take the lead, and had a stall level at 2238 which proved quite strong.Profit taking is perfectly in order, and we now have to check for support. MTFS is slightly bearish so there is a chance it goes lower than 2190. No Panic though, as NDX may just gather more strength to reach 2250 later on (possible Fib development).
Daily: Congestion to Up, slow down approaching strong resistance level.
This one-day correction is certainly not alarming yet. There is no indication of a change in trend.
Weekly: congestion to mildly UP - Low significance level.
Entropy is looking very good, but MTFS has difficulty adapting to such a strong run (U-shape pattern is not closing). We therefore have 'waves in overbought zone' which may justify looking at a higher time frame. It seems we're entering a period of congestion, at least compared to the seemingly unstoppable bull run we've had. Looking at MTFS, no retracement in sight just yet, but we have to watch how this divergence develops.
