Monday, October 22, 2007

Market Outlook RUT for Oct 22nd '07


Dominant TF: 60 mins & Daily (15mins time frames too).
Swings: DN-DN-DN
Market direction: congestion to down initially. No panic just yet, as a support will probably be found soon.

It is relatively difficult to comment this market correctly as one could be tempted to join the new bear wave and announce the apocalypse. The truth is that this correction was expected and probably also healthy. There is no indication that it will go much lower as the daily chart may find a support soon, hence bounce and stay relatively bullish overall.

Detailed chart interpretation: Strong correlation with SPY so, interpretation also very similar hence no need to virtually copy/paste whole commentary (see post below: http://marketsnapshot.blogspot.com/2007/10/market-outlook-spy-for-oct-22nd-07.html)

Support level to be found around 794 or 781. Very negative bias at first.