Market Outlook RUT for Dec 20th '07

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

We can see opposing MTFS patterns with the same significance level, indicating likely congestion

60 mins: up to Fib PR1, but then what...?
Some lethargic revovery which should crawl to Fib PR1 (almost hit it late in the day), but as we have seen recently, the MTFS crossover is indicative of a 'failing recovery' pattern. RUT should therefore not go much higher.
750 has been tested during the course of the day, and could tested again.

daily: trading range is likely, but support must be confirmed.
Again, 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 (except for the cycle indicator) so RUT should fluctuate within the lower part of the [750-780] trading range. Should volatility increase, the range can be [740-790] .
NB: Cycles are the least reliable indicators in our toolset, and can only help determining turning points when all indicators point in the same direction, which is not the case at the moment.

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. One should remain VERY cautious on these levels. A market fall on level breakout is a scenario which cannot be discarded.