Market Outlook RUT for Dec 6th '07

Dominant TF: 60mins & Daily.
Swings: DN-UP-DN (from DN-DN-DN)
Market direction: Congestion to moderately down.

OK, same story... (see SPY and NDX posts) Yesterday's bullish day came a little bit as a surprise, but the market has always surprised with sudden bouts of volatility lately. This does not really change our scenario.

60mins: Congestion.
MTFS still indicates a fairly directionless market, now with an upper bias, but this does not mean it will not now drift a little. One may note that the Swing indicator has not turned up. Like for other symbols, RUT can either remain in the same [750-767] range or jump to the one above [767-781].

Daily: congestion
Exact same situation:
As explained a couple of days ago, we have a typical failed recovery pattern, so we now have to see how it develops (double bottom, cup & handle, or ... downright fall!). For the time being, there is not enough energy for any scenario to develop fast (EntBin = 0).
Note: the cycle detection also gives us a dual frequency possibly causing a momentary congestion due to a phase offset.

Weekly: return to the trading range, but lower bias still.
We're now back in our [750-875] range, with a lower bias. One can only hope that 750 will hold...