Market Outlook NDX for Dec 20th '07

Dominant TF: 60mins (and lower)
Swings: UP-DN-UP (from DN-DN-UP)
Cycles: long cycle turning up - low significance level
Market Direction: No strong rebound on 2000... NDX could go either way...

Again, it is more fun on 5 and 10mins time frames. Users of the technique generally select 2 or 3 time frames among 6 to determine the best trading environment.

60mins: directionless, slight upper bias
A priori nothing much to expect today but surprises are always possible on witching days.
After finding an intraday support at 2016, indicators point for a slight upward bias, aiming at crawling to Fib PR1.

Daily: congestion to down
We would like to be optimistic after 2000 has been hit, but swing is down, bars are red, MTFS and Entropy have negative gradients, so we'll have to wait a bit. 2000 looks strong enough for now, so congestion is likely.
One may also notice an MM octave (i.e. 8 sublevels between 2000 and 2125), so levels will be marked at 2131 and 2162.


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. We would be in trouble if 2000 would break...