Market Outlook NDX for Oct 11th '07

Dominant TF: 60mins, Daily
Swings: UP-UP-UP
Market direction: UP until ...

No change from yesterday:

60mins: Up, but very overbought.
NDX seems to be heading for the 2188 level now, and no retracement in sight in the short term. Only an influence from SPX may affect this trend to some extent.

Daily: Crazy, i.e. still up.
Nothing seems to be able to stop the trend which seems excessive now.
Levels to watch: 2188 first then 2250. A retracement on 2188 is possible, maybe triggered by economic news or correlation with SPX which is on a test level.

Weekly: UP until resistance is found
AdStoK lines should soon meet, but significance level is so low at this time frame, so this is nothing more than a background information.
One can however notice a divergence, hence there is a possible slowdown on forthcoming resistance and line meeting point.

Market Outlook SPY for Oct 11th '07

Dominant TF: Daily
Swings: UP-UP-UP
Market direction: Mildly UP at least until resistance is tested.

Note that SPY is the leading symbol in our index selection (S&P500, NDX and RUT).

60mins: neutral to mildly UP. Possible congestion.
AdStoK lines haven't joined and Entropy is again coming down a bit. Current resistance at 156.25 is obviously still valid, and since the significance level is not very high, one must look for clues on higher times frames.

Daily: mildly UP until resistance is tested.
Entropy is still quite high, and only slowly declining. AdStoK may soon show first signs of weakness as lines could cross shortly, but this probably won't translate into a retracement any time soon.
We now have to watch how the market attacks the current strong resistance level (all time highs + MM + FIB (60mins)). Note that this MM level is not as strong as same level in July. One can just as well see a strong breakout or a kind of double top. There is still so much accumulated energy that the latter scenario is less probable at this stage.

Weekly: mildly UP.
The Swing indicator is now more firmly up, but the key swing price level is still close at this time frame.
Entropy is slowly looking better, and the trend should be at least mildly up until AdStoK lines cross.
So, for the time being, no visible change in market dynamics coming.
One will have to keep an eye on AdStoK when lines cross, as there is a chance of divergence in this indicator with lines joining at a lower level than prices (double top later on?).

Market Outlook RUT for Oct 10th '07

Dominant TF: Weekly and Daily
Swings: UP-UP-UP
Market direction: Up until...

Note that SPY is the leading symbol in our selection of 3 indices.

60mins: neutral to mildly up.
Despite the positive reaction to the news, one can see that RUT still hovers on the 843 pivot level (range 838-845). The pivot level has also turned to resistance level indicating more difficulty going higher. One will also note that yesterday's up day did not affect Entropy which is very low.

Daily: Mildly UP.
AdStoK is still bullish and should carry on its bumpy ride to higher levels. The white line is now seriously overbought, so a minor retracement is possible without affecting the overall trend... until lines join...
Current resistance level at 843 is fairly strong then 860 and ultimately 875.
AdStoK's green line grows at a rate of 5% per day at the moment, so it could take a couple of days before they cross and possibly see some slowing down (line gradient upon crossing should provide interesting information then).

Weekly: UP until...
Entropy and AdStoK now show more clearly the way up to 851, 860 then maybe 875 over the next couple of weeks. The Swing indicator is up, but remains close to a key turning point.

Market Outlook NDX for Oct 10th '07

Dominant TF: Daily
Swings: UP-UP-UP
Market direction: UP until ...

60mins: Up, but very overbought.
NDX seems to be heading for the 2188 level now, and no retracement in sight in the short term. Only an influence from SPX may affect this trend to some extent.

Daily: Crazy, i.e. still up.
Nothing seems to be able to stop the trend which seems excessive now.
Levels to watch: 2188 first then 2250. A retracement on 2188 is possible, maybe triggered by economic news or correlation with SPX which is on a test level.

Weekly: UP until resistance is found
AdStoK lines should soon meet, but significance level is so low at this time frame, so this is nothing more than a background information.
One can however notice a divergence, hence there is a possible slowdown on forthcoming resistance and line meeting point.

Market Outlook SPY for Oct 10th '07

Dominant TF: Daily
Swings: UP-UP-UP
Market direction: Mildly UP at least until resistance is tested.

Note that SPY is the leading symbol in our index selection (S&P500, NDX and RUT).

60mins: neutral to mildly UP.
SPY reacted to the positive news with a new test of all time highs. AdStoK almost completed it V shape pattern, so we may have a decision point coming when lines join. Entropy has picked up again so one may reach 157.8 (Fib + MM) over the next few days. Current resistance at 156.25 is obviously still valid though.

Daily: mildly UP until resistance is tested.
Entropy is still quite high, and only slowly declining. AdStoK may soon show first signs of weakness as lines could cross shortly, but this probably won't translate into a retracement any time soon.
We now have to watch how the market attacks the current strong resistance level (July highs + MM + FIB (60mins)). Note that MM level is not as strong as same level in July.


Weekly: mildly UP.
The Swing indicator is now more firmly up, but the key swing price level is still close at this time frame.
Entropy is slowly looking better, and the trend should be at least mildly up until AdStoK lines cross.
So, for the time being, no visible change in market dynamics coming.
One will have to keep an eye on AdStoK when lines cross, as there is a chance of divergence in this indicator with lines joining at a lower level than prices (double top later on?).