Market Outlook RUT for Dec 19th '07

Dominant TF: Daily, 60mins as well as lower time frames
Swings: UP-DN-DN (from DN-DN-DN)
Cycles: up - average fit - low significance
Market Direction: congestion with a lower bias, but caution on this key 740 level

Similar situation as SPY.

60 mins: Key level [740-750] needs to be confirmed
The market did not allow RUT to venture dangerously below 740, and then a good recovery late in the day after Entropy bottomed out.
Like for SPY, the MTFS crossover is not too exciting, so one would need a support level like 750 to be confirmed first.

daily: trading range is likely, but support must be confirmed.
No change from yesterday:
MTFS and Entropy are again weakening further. We have the final confirmation of the failed recovery pattern mentioned about 2 weeks ago. There are no signs of a recovery so RUT should fluctuate within the lower part of the [750-780] trading range. Should volatility increase, the range can be [740-790]

weekly: Same trading range [750-875] with lower bias. Caution must be exercised on key level.
Swing is down and MTFS and Entropy are certainly not looking too good. 740 is Fib PR2 (61.8%). RUT has always bounced on PR2 in the last 2 years, but one should remain VERY cautious still.