Market Outlook NDX for Dec 7th '07

Dominant TF: 60mins (and lower)
Swings: UP-UP-UP
Cycles: 128:Weak, 64:Average
Market Direction: Moderately up - behaviour on 2125 is key

Uninspired commentators will say that some economic news fueled a 2-day rally, and allowed NDX to prematurely reach a major resistance level in the short term (60mins). The truth is that there are indeed occasions of spurrious volatility which turn targets into attractors. While difficult to detect, such self-induced momenta generally do happen when there is virtually no upward or downward pressure to control them. Intraday traders will have switched to a 15mins chart, while our interpretation remains within the scope we had in mind. More important is what's coming next now that NDX has reached that key level.

60mins: Upper bias, but behaviour on key resistance level may cause some congestion.
The MTFS pattern has not been the easiest to read, with that second bout of rallying starting from median territory. Such moves generally carry little energy, hence it is surprising NDX reached its resistance level so quickly. Now the pattern has to complete somwehow with lines joining either in overbought territory... or oversold territory.
At this point in time, volatility is high in a market that is looking for a pause.
Current target [2125-2133]. Possible longer term target [2185-2190].

Daily: Up, but recovery pattern is weakening a bit in the short tem
Despite this 2-day rally, the MTFS pattern is showing moderate signs of weakness,and while Entropy has been increasing, LEntBin = 4, so is quite high. That would tend to predict if not a retracement, at least a pause in the coming days. Longet term, the 2250 targetis back on track.
In the short term, targets would be easier to predict if MM and Fib levels somehow coincided, but no luck this time... It is not clear whether the upper bias we still have will bring NDX a little higher (2140?) or whether a period of congestion is imminent. No retracement in sight just yet, but we'll have to watch Entropy over the next few days.

Weekly: up...
NDX is half-way in its channel again. We don't have a blue bar yet though.
Surprisingly enough, 2000 is still a major resistance level at this time frame.