Market Outlook SPY for Dec 18th '07

Dominant TF: Daily and low intraday time frames
Swing: DN-DN-DN (from DN-DN-UP)
Cycles: up - good fit but low significance
Market Direction: No change in overall direction just yet, but a support must be found soon

Fairly good quality cycles on daily chart pointup upward in the short to medium term.

60mins: down
Like for NDX, the acceleration down came a little bit as a surprise. The lower part of the trading range (147) was broken to reach the next level down. Now, while there could be a pause, SPY seems to point towards 143.75. MTFS and Entropy indeed do not indicate a bottom just yet.

Daily: congestion is likely, but wait for support to be confirmed.
After 146.8 was broken, SPY surprisingly accelerated to the next support level which is also a stronger Fib level. While a strong rebound looks unlikely, congestion is now quite possible with MTFS lines hovering median territory.
MTFS and Entropy gradients indicate some weakness, but no reason to panic just yet.

Weekly: Congestion & Volatility
MTFS is unreadable because of the low significance level, hence one should not pay too much attention to the lines down gradients.
Note that Swing has turned down again.