Market Outlook NDX for Dec 18th '07

Dominant TF: 60mins (and lower)
Swings: DN-DN-UP (from DN-UP-UP)
Cycles: long cycle pointing down - low to avg significance level
Market Direction:
lower until next support

60mins: 2000 is now in sight.
As I thought, the down move accelerated (cf Entropy) during the course of the day, which is a good sign as it is always best having a support level hit with some energy to generate some reaction.
MTFS and Entropy are not indicating a bottom just yet. However, stall level is about here at 2016, and the strong support level at 2000 is in sight now. There seems to be still too much energy to stop the fall on 2016, even if a pause should at least be marked at that level first.

Daily: lower til support is found (2000)
I admittedly missed this volatility spike, and thought support levels on the way down would hold at least for a while. It is not uncommon to see MM levels acting as attractors, particularly after a slowdown period.
However, MTFS lines while turning down do not indicate a significant move, so a strong support level like 2000 should hold. We shall obviously remain cautious.

Weekly: Check channel boundary
While significance level is low, this mostly affects MTFS. We can still notice that NDX is touching the lower part of its channel, and the weekly bar is red. Caution should be exercised at these levels.