Market Outlook RUT for Jan 10th '08

Dominant TF: 60mins & Daily
Swings: UP-DN-DN (from DN-DN-DN)
Cycles: unreliable
Market Direction: recovery needs confirmation
Position:
Short: would have taken profit, but exit point around 700 is still possible
Long: way too early

60mins: fall may be over, but no strong recovery just yet
RUT about hit its target on MM level and recovered a bit. EntBin is very low, which certainly indicates a possible bounce, so reaching 732 again cannot be discarded. MTFS is not quite the best looking pattern for recovery though, so no real recovery in the short term.
NB: the Swing indicator is a very early indicator, but ALWAYS needs confirmation. It may turn back down, hence indicate more an end to the current fall than a real recovery.

Daily: congestion to down
The Fib target (~688) has been hit quicker than i thought. Entropy indicates a possible bounce, but like for the equally significant 60mins chart, MTFS lines are too steep to indicate a strong recovery. Bears may want to try and test lows again, or at least the low 700s.

Weekly: congestion to down
RUT has always bounced on PR2 (61.8% Fib retracement) but this time didn't. This confirms RUT is definitely in correction mode at least to previous lows around 670 - 680. We may also find guidance on Fib levels from 2005 or before.