Market Outlook SPY for Dec 7th '07

Dominant TF: 60 mins and Daily
Swing: UP-UP-DN
Cycle: Daily 128: Avg
Market Direction: Upper bias but possible congestion

Same comment as for NDX.
SPY surprisingly passed the 150 level late in the day to almost hit PR2 (151.06).

60mins: Upper bias.
We now have to wait until the MTFS pattern completes in overbought territory. We are in between decision points and the pattern certainly isn't the easiest to read right now. while an upper bias is obvious, congestion on Fib or MM level is more than possible.

Daily: up, but behaviour on 151 must be watched carefully.
As said above, SPY almost reached PR2 (61.8% Fib retracement). MTFS is fairly bullish now, and one can only be a little frustrated it never completed the previous down pattern (crossover in oversold territory). It seems a little too late now to see a substantial retracement, but a pause is quite possible.

Weekly: Upper bias
MTFS is unreadable because of the low significance level, hence one should not pay too much attention to the lines down gradients.
For the time being, higher highs and higher lows are bullish signs, with due caution that moves in the last 6 months have been way too fast for this time frame.