Market Outlook RUT for Sep 19th '07

Dominant TF: Weekly!
Swings: UP-UP-DN
Market direction: mildly up.

60mins:
The Fed rate cut helped RUT break levels happily to pass the important 800 MM level, on its way to the major 812.50 level.
AdStoK and Entopy are quite bullish and indicate that next resistance level should be tested soon.

Daily:
AdStoK is obviously more bullish but it may take some time to see the underlying trend recover and join the party. One should wait for 800 to be clearly passed and 812 to be tested first.
Should we see some profit taking, or continuation of the trading range, RUT will find support around 797, then 781 in the worst case scenario.

Weekly:
The Swing indicator has not turned around yet, and weekly bars are still yellow, indicating we are not back to bullish mode just yet. Having said that, volatility is the main cause for this hesitation, and once 800 / 812 levels are clearly broken, RUT will be heading towards previous highs and maybe up to 875.

Market Outlook NDX for Sep 19th '07

Dominant TF: Daily (or intraday < 30mins)
Swings: UP-UP-UP
Market direction: mildly UP.

60mins:
The Fed rate cut helped NDX break levels happily to pass the important 2000 MM level, to reach a Fib level close to 2040. AdStoK is quite bullish (although overbought), but while Entropy could keep growing, it may in fact peak soon.
Major resistance level is now 2062 which is higher than July highs! Some support will have to be found first, either 2031, 2016, or maybe even 2000.

Daily:
The extraordinary move we've had is not quite accompanied by a stronger Entropy. The rate cut should however translate into a higher trading range now: 2000 (possibly 1980) to 2040 (possibly 2055).

Weekly:
Even after this rate cut, there is only some minor upward bias left (Entropy), so it could just as well be a return to the bullish trend than a double top...
This time frame is not very significant right now, so one should take cues from the daily chart for now.

Market Outlook SPY for Sep 19th '07

Dominant TF: Daily (and intraday < 30mins)
Swings: UP-UP-DN
Market direction: UP.

60mins:
The Fed rate cut helped SPY break the 150 level to now head toward 155 / 156, with a possible pause on the way at 153.
AdStoK turned very positive, so did Entropy.
Should there be some profit taking, 150 (maybe 149.50) would be tested for support.

Daily:
The Fed cut does not eliminate market risk (subprime etc), and should therefore not be interpreted as a "pass" to new highs.
AdStoK is obviously more bullish but it may take some time to see the underlying trend join the party. One should wait for 150 tested for support to see higher prices.
Should we see some profit taking, SPY will find support around 150, otherwise 147. The possible range is therefore: 150 (maybe 147) to 153 and 155.50 (July highs).
Considering the upward bias, the upper boundary of this range should be tested soon.

Weekly:
The Swing indicator has not turned around yet (due to high vol.), but the chart certainly looks bullish. Negative entropy should be exhausted to be fully reassured though.

Market Outlook MID for Sep 19th '07

Dominant TF: Daily (or intraday < 30mins)
Swings: UP-UP-DN
Market direction: mildly UP to UP.

60mins:
The Fed rate cut helped MID break levels happily to pass the important 875 MM level.
AdStoK turned very positive, so did Entropy.
MID can now reach 890 to 895.

Daily:
AdStoK is obviously more bullish but it may take some time to see the underlying trend join the party. One should wait for 877 to be clearly passed and possible tested for support to see higher prices.
Should we see some profit taking, or continuation of the trading range, MID will find support around 855, then 843.
On the up side, 890 then 906.

Weekly:
The Swing indicator has not turned around yet, and weekly bars are still yellow, indicating we are not back to bullish mode just yet. Having said that, volatility is the main cause for this hesitation, and once 875 / 880 level is clearly broken, MID will be heading towards previous highs and maybe up to 937.