Market Outlook SPY for Oct 5th '07

Dominant TF: Daily
Swings: UP-UP-UP
Market direction: Neutral to mildly UP. July highs in sight now.

60mins: neutral.
Same type of trading range as yesterday with a mild upward bias. The resistance just above 154.5 could soon turn to a higher target, but there isn't much energy left right now. Note that the 156.25 target is now visible.

Daily: mildly UP.
Same situation hence copy/paste from yesterday:
Entropy is still quite high, albeit very slowly declining. AdStoK is giving a last bout to reach very overbought level without lines crossing just yet. This is a bullish situation (high prob). One can only expect its continuation i.e. slow steady increase, at least until AdStoK lines cross (July highs?). Entropy at 3 is historically very high, so a slowdown (rate of increase) is almost certain.
Next target is just above 156.

Weekly: mildly UP to UP
The Swing indicator is again hesitant as it is up again, confirming we are close to a key level at this time frame.
Entropy is slowly looking better, and the AdStoK white line is clearly showing the "U" shape indicating recovery at least until lines cross.
So, for the time being, no visible change in market dynamics coming (despite expectations of a bumpy October).
One will have to check where lines cross, as there is a chance of divergence in this indicator.

Market Outlook RUT for Oct 4th '07

Dominant TF: 60mins
Swings: DN-UP-DN
Market direction: mildly UP. New target: 843.

60mins: trading range, support level to be found
AdStoK is still bullish but showing signs of slowing on this 829 level, and Entropy has lost all its steam in about a day and a half. A support level must be found now around yesterday's lows or maybe around 820.
Note that MM levels have aligned to daily ones, i.e. strong MM resistance level at 875. 812.50 is now a strong support level.

Daily: Mildly UP.
AdStoK is still bullish and should carry on its bumpy ride to higher levels now that the key 812.50 level is behind us.
The next levels are 829 (still valid, but minor), 843 (stronger) then 860 and ultimately 875.

Weekly: mildly UP
Entropy and AdStoK now show more clear the way up to 843 over the next few weeks. The Swing indicator should turn around any time now. It has so far been a good representation of the hesitations we've had in lower time frames.

Market Outlook NDX for Oct 4th '07

Dominant TF: Daily
Swings: UP-UP-UP
Market direction: neutral to mildly UP, until 2125 resistance is truly tested. Probable slowdown then.

60mins: possible hesitation until new resistance level at 2125.
AdStoK is very bullish with an undecisive white line following cycles and now going down indicating a pause to minor retracement (strong support at 2094). The reason is that after such a strong bull run, NDX has been stopped onthe MM stall level, ahead of the (too) expected MM resistance level. NDX will besiege and almost certainly conquer 2125 as the overall trend remains up. Note however that significance level is low indicating one should focus on a higher time frame.

Daily: mildly UP. Possible congestion or slowdown on coming resistance, due to extreme overbought situation.
Same situation hence copy/paste from yesterday:
NDX is so strong it could go beyond 2125. Entropy is close to 5 which is a very high level at this time frame, hence a slow down is likely after it peaks. AdStoK is at a crossover point, however one must be cautious is extreme overbought situation and wait for a steeper gradient to leave overbought zone, hence some significant retracement to confirm a slowdown. In the meantime, no visible change in direction ahead.

Weekly: mildly UP to UP
AdStoK lines should soon meet, but significance level is low at this time frame, so this is nothing more than a background information.
One can check for a possible change in dynamics on AdStoK line crossover, which could happen around the much anticipated 2125 level.

Market Outlook SPY for Oct 4th '07

Dominant TF: Daily
Swings: DN-UP-DN
Market direction: Neutral to mildly UP. July highs in sight now.

60mins: neutral.
AdStoK and Entropy showing mild signs of weakness, SPY will be looking for support within this narrow trading range, around 153.50 or closer to the MM pivot. It probably won't go lower as the entropy could already bottom shortly and the AdStoK's green line has a very shallow gradient. Range highs could be tested again.
Note that significance level at this time frame (yellow dots) is dropping though.

Daily: mildly UP to UP.
Same situation hence copy/paste from yesterday:
Entropy is now stable at a high level, and AdStoK is giving a last bout to reach very overbought level without lines crossing. One can only expect continuation of the same situation, i.e. slow steady increase, at least until AdStoK lines cross (July highs?). Entropy at 3 is historically very high, so a slowdown (rate of increase) is almost certain.
One should note that the current resistance level at 150 is still in place, indicating some difficulty going higher (at least for now).

Weekly: mildly UP to UP
The Swing indicator is certainly hesitant as it is down again, indicating we might be close to a key level at this time frame.
Entropy is slowly looking better, and the AdStoK white line is clearly showing the "U" shape indicating recovery at least until lines cross.
So, for the time being, no visible change in market dynamics coming (despite expectations of a bumpy October).
One will have to check where lines cross, as there is a chance of divergence in this indicator.