Market Outlook SPY for Jan 4th '08

Dominant TF: 60mins & Daily
Swings: DN-DN-DN (from UP-DN-DN)
Cycles: possible upturn but very low significance level
Market Direction: probably lower lower still
Position:
Short: nothing wrong taking profit around lower 144s
Flat: be patient
Long: very risky

60mins: congestion to possibly lower
As mentioned yesterday, we have early signs of a bottom, but despite the recovery late in the day, it is way too early to go long at this time frame (nothing wrong with a few swing trades at lower time frames though).

Daily: down bias
MTFS is fairly undetermined (with a slight lower bias though). One should be careful is 143.75 is broken. One can notice a triangle pattern.

Weekly: own
Despite the low significance level, one must be careful as we have another triangle pattern (lower highs - higher lows) with a possible breakout coming either way.