Market Outlook SPY for Nov 28th '07

Dominant TF: 60 mins & Daily
Swings: UP-DN-DN (from DN-DN-DN)
Market direction: mildly down - possible congestion on current levels

Unlike NDX, the daily time frame gives us a very good picture.

60mins: congestion on current levels
Entropy and MTFS both still point toward continuation of price erosion with a possible congestion (140.6 is a support level on lower time frames). No real recovery potential in the short term until we get a clearer picture from MTFS and Entropy.

Daily: Congestion to mildly down.
MTFS and Entropy do not look too good and at this stage it is likely that the fall or at least price erosion will continue until MTFS lines meet. The White Line is stabilising so congestion is a likely scenario, indicating that support levels at 141 could hold (otherwise 137.50). Again let's first wait for a MTFS crossover.
While it is certainly too early, AutoFib has detected a recovery pattern. The last pivot (no4) should however first stabilise to consider it seriously.

Weekly: congestion to down - very low significance level.
This time frame has such a low significance level it is almost pointless reading it. We can only rely on the Swing indicator as well as MM and Fib levels. For the time being, it is safe to say that we are in a broad trading range with a down bias. The lower end of the range could be tested again.