Market Outlook RUT for Dec 14th '07

Dominant TF: Daily, 60mins as well as lower time frames
Swings: DN-UP-DN (from DN-UP-DN)
Market Direction: congestion with a lower bias

Read previous general comments on SPY and NDX.
Patterns are different, but dynamics are correlated.

60 mins: Support level may have to be found lower
RUT seems to have found support around the high 750s, which corresponds to a weak Fib level and a MM stall level (not quite justified). RUT could therefore drift lower to 750.
At the same time since MTFS is only moderately bearish, RUT may just remain congested in more or less the same trading range.

daily: congestion.
MTFS and Entropy are again weakening a bit, so we may have some congestion ahead. Again, the MTFS recovery pattern looks more and more like the 'failed recovery' pattern mentioned about a week ago. Support will be found around 757 (Fib) or right down to 750. Since there is no clear direction in the short term, one may take yesterday's low (759.20) as the stronger base we need to go higher.

weekly: Directionless with a lower bias for the time being
Same situation: range [750-875]
Swing turned back down indicating RUT is not out of the woods just yet. Current congestion still hides a down bias. A weekly up bar, and if not blue, at least yellow, would confirm a safe return to the trading range.