Market Outlook SPY for Dec 5th '07

Dominant TF: 60mins & Daily
Swings: DN-UP-UP (from DN-UP-DN)
Market direction: congestion.

Yesterday's anticipation proved right, and today's scenario is about the same. Market readability is however not improving due to opposite information emanating from both dominant time frames.

60mins: congestion to moderately down
Pattern is unclear. Same mild downward bias until some support is found (Fib PR1?).
Note: Rate of decline is close to the natural angle of repose.

Daily: congestion to mildly up
Similar situation as yesterday:
With now both 60mins and daily chart with equivalent significance levels, and a MTFS pattern that is typical of a failed recovery, it is not easy to make head or tail of this market. Entropy on both charts also aim at different directions.
We now have to wait for a pattern to develop, possibly a cup & handle formation. There is however no downward pressure right now, so difficult to estimate where a stronger support level will be found. At the same time, we also have to reach 150 again soon otherwise the 'failed recovery' pattern will become a more likely possibility (new pivot no4 has been detected).

Weekly: congestion to moderately down - very low significance level.
This time frame has such a low significance level it is almost pointless reading it. We can only rely on the Swing indicator as well as MM and Fib levels. For the time being, it is safe to say that we are in a broad trading range with a downward bias. Failure to pass the 150 strong resistance level would become alarming if significance level wasn't so low.