Market Outlook SPY for Dec 6th '07

Dominant TF: 60mins & Daily
Swings: UP-UP-UP (from DN-UP-UP)
Market direction: congestion - behaviour on 150 is key.

I warned yesterday of some difficulty in reading the current market, particularly in the short term (60mins chart).

60mins: Up bias (150?) but otherwise a trading range is likely
Pattern not much clearer, indicative of a possible trading range with an upper bias. SPY will either remain in the same [147-148.5] range, or jump to the next one [148.5-150]. We unfortunately have to wait for MTFS lines to group up for the next pattern to emerge.

Daily: congestion to mildly up
Similar situation as yesterday and the day before:
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, and we have to reach 150 again soon otherwise the 'failed recovery' pattern will become a more likely possibility.

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.