Market Outlook NDX for Jan 9th '08

Dominant TF: 60mins & Daily
Swings: DN-DN-DN (from DN-DN-DN)
Cycles (DomTF): have been turned off as too unreliable in this market
Market Direction (Daily): drifting down
Position (60mins):
Short: nothing wrong with taking profits, but maybe more to come
Flat: be patient
Long: you must be mad!

NDX is now looking for support.

60mins: possible congestion or slower price erosion.
As mentioned yesterday, support held for a while, then bears decided to have a go at it again.
Pattern-wise, MTFS needs better foundation to find support (crossover with a decent gradient in oversold territory), but Entropy is calming down a bit. MM support level is 1875, and we have a Fib pattern on the daily chart (equally significant at 0.88)

Daily: down looking for support.
Same as yesterday: MTFS is driven by its lines gradient right now. Amazingly, MTFS line levels are not quite indicative of a market fall just yet even if it is becoming a little alarming for some.
Again, the overall MTFS pattern is definitily not a conventional one (or close to a 'failed recovery' pattern), so we'll probably stay in a broader trading range until lines finally converge in oversold territory.
Volatility has however already pushed levels pretty wide apart so the next

support level may well be 1886 (Fib target) or around 1875 (MM support level on 60mins chart). MM Stall level is 1904.

Weekly: Channel broke out... what next???
It seems the bull run is now over so we may need to enter a correction mode (check FIb + MM levels)
We should however only note the clear down bias for now, and focus on shorter time frames. Please also note that Swing is still hesitant at this level and could therefore turn up again. In other words, correction mode is not bear mode just yet at this time frame.