Market Outlook NDX for Jan 4th '08

Dominant TF: 60mins & also Daily
Swings: DN-DN-DN (from UP-DN-UP)
Cycles (DomTF): possible upturn - low significance level
Market Direction (Daily): same trading range [2000 - 2125], erosion to 2000 is quite possible
Position (60mins):
Short: hang on
Flat: be patient
Long: consider changing job

We anticipated a slowdown on the way down, yet 2040 is not a major support level, and all 3 Swings are down...

60mins: congestion to lower bias
NDX is still looking for a lower support. Swing went momentarily up yesterday indicating the pause we saw. Indicators are still too bearish to envisage an upturn right now. Despite a recovery late in the day, price erosion may continue to 2032 (next levels down are about 16 points apart).

Daily: same trading range - looking for lower 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: Caution: 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. Breaking 2000 could mean a much lower support level.