Market Outlook NDX for Jan 3rd '08

Dominant TF: 60mins & also Daily
Swings: UP-DN-UP (from DN-DN-UP)
Cycles: long cycle turning down - low to average significance level
Market Direction: same trading range [2000 - 2125], erosion to 2000 is quite possible
Position:
Short: hang on
Flat: be patient
Long: go get a tissue

Happy New Year to all!!
I'm sure you haven't missed my snapshots over the festive season, as the market was quite easy to read. We have seen mostly red bars on the dominant 60mins time frame, until NDX reached Fib PR1. Now what's next? We have closed 2007 on a soft landing on a predictable level. Price erosion is still there and we may have no serious support before 2016, or maybe even 2000.

60mins: lower bias
NDX is looking for a lower support. The Swing is momentarily up, which could indicate a pause or a slower fall, but MTFS is still quite bearish.
Look for support on 2016 (stall level) or even 2000.

Daily: same trading range since November - looking for support around 2000
No clear directional pattern despite good significance level.
Non-directional traders can take advantage of this market configuration (lower bias, and support likely to hold at this stage).

Weekly: Check channel's lower boundary
Significance level is too low to pay attention to MTFS, and to this time frame in general. Yet, one shall keep an eye on the channel lower boundary currently around 2030.