Market Outlook SPY for Jan 9th '08

Dominant TF: 60mins & Daily
Swings: DN-DN-DN (from DN-DN-DN)
Cycles: unreliable
Market Direction: probably lower still
Position:
Short: nothing wrong taking profit around coming support level
Flat: be patient
Long: you must be mad

60mins: likely congestion on stall level or slightly down to support level.
Similar as yesterday: SPY fall stopped on MM stall level around 139. The overall environment remains fairly bearish but Entropy is not so strong anymore. The strong MM level remains 137.50.

Daily: congestion to down
Similar to yesterday:
Like with NDX, we are surprisingly not in a very bearish environment just yet. SPY should drift further down to 137.5. There is no clear indication of a bottom in the near term. The 139 stall level shouldn't hold, so we'll have to watch for 137.5 or possibly the 136 Fib target.
SPY has the potential to go lower, but negative pressure could exhaust within a week or so.

Weekly: congestion to down
This time frame has been out of sync for a while, but we shall notice the previous lows, which bears should try and test.