Market Outlook RUT for Jan 8th '08

Dominant TF: 60mins & Daily
Swings: DN-DN-DN (from DN-DN-DN)
Cycles: possible upturn, but very low significance level...
Market Direction: down, but possible support level at 719
Position (60mins):
Short: some may want to hang on, but nothing wrong with taking profits.
Flat: it would be cautious to stay a little longer on the sideline
Long: are we looking at the same chart !!!?!?

Note: this chart reads like SPY

60mins: congestion or down drift
The MTFS crossover does not indicate any recovery potential, and while Entropy seems to have bottomed it remains very low. EntBin is quite low at -4 though, but it has been low for a few days. In such situation a congestion at this low level is possible, but this support level is not very strong, so RUT could drift more altough there is no clear Fib level to aim to. The next strong MM support level is 688, which surprisingly is lower than on the daily chart.

Daily: down but 719 may hold for now.
The down drift may continue until lines eventually bounce in oversold territory. The previous recovery pattern (started end Nov) failed, so we have to wait for the next one... or adjust to a new bear trend.
For the time being, Entropy indicates little energy either way, so RUT may stay congested (with a lower bias) for a while.

Weekly: lower bias
MTFS is not looking too good, while its significance level is picking up. A support must be found soon otherwise RUT will definitely turn to correction mode down to 680.