Market Outlook NDX for Jan 10th '08

Dominant TF: 60mins & Daily
Swings: DN-DN-UP (from DN-DN-DN)
Cycles (DomTF): have been turned off as too unreliable in this market
Market Direction (Daily): congestion
Position (60mins):
Short: would be looking for an exit point in the low 1900s
Long: not quite yet

NDX is now looking for support.

60mins: possible congestion
Is the fall over? Well, one must always take MM stall levels seriously (half way between MM white dots and strong MM support at 1875). That level is around 1906.
MTFS is not indicating a real recovery at this stage, but the fall may be over. In such circumstances, NDX could retrace up to PR1 (~1989) but this is unlikely. Bears won't give up without a good fight, so NDX should be contained within a trading range around the low to mid 1900s

Daily: support level must be tested
NDX hit its Fib target, then recovered a bit, yet MTFS and Entropy still point downward. If 1886 proved to be a support level it will have to be tested again. Bears may go softer now though.

Weekly: definite down bias, check Fib and MM levels
It seems the bull run is now over so we may need to enter a correction mode (not bear mode yet though). One can notice that the Swing indicator is hesitant at this level (down yesterday, up today).
Note: this proprietary Swing algorithm differs from conventional algorithms which always toggle in lower time frames first. We are in this instance probably close to a key level at this time frame.