Market Outlook NDX for Dec 6th '07

Dominant TF: 60mins
Swings: UP-UP-DN (from DN-UP-UP)
Market direction: recovery potential weakening but the recovery pattern is still there.

I admittedly got it a little wrong on the 60mins i.e. short term yesterday, but the MTFS did not help us with a clear pattern, and we knew we had some opposition with the daily chart. NDX bounced strongly on the 50% retracement level, which I did not quite anticipate. Let's see how this conflictual situation now develops.

60mins: congestion to up.
The Fib pattern could obviously develop further, but there again, MTFS is not offering us a convincing pattern. Despite the burst of energy, Entropy could peak soon. The bias is up, but until 2125 is passed, NDX should stay in the current trading range [2062-2094] or jump to the one above [2094-2125]

Daily: congestion to slightly up
Despite yesterday's up day, the recovery pattern is still weakening indicating difficulty in reaching its Fib target. Entropy may even peak soon at this low level (EntBin = 3). Again it is essential that 2125 is passed so that NDX returns to the overall bullish trend and reaches Fib targets (2140 first), with 2250 being very significant (strong MM resistance as well). Failure to pass 2125 over the next few days, while not really anticipated should be watched carefully.

Weekly: trading range - lower bias
NDX is back into its channel, and bar colour is turning to yellow. However current movements are too fast for this time frame at the moment, explaining the low significance level (53%).