Market Outlook SPY for Nov 6th '07

Dominant TF: 60mins, Daily and low intraday time frames
Swings: DN-DN-UP
Market direction: Congestion with lower bias, but check levels and new pattern forming.

Like NDX, SPY has closed on a nice round number. Difficulty is that at this point in time, we have no clear indication of direction going forward.

60mins: undetermined.
MTFS is still stitting beareish on a very strong Fib + MM support. With a high significance level, the recovery potential is minimum at best yet Entropy seems to have bottomed. Forthcoming direction is impossible to determined as it can go either way from this key 150 level.

Daily: down, but possible congestion.
Significance level is slowly coming down, indicating we'll have to pay more attention to lower time frames.150 is obviously a difficult level to pass, but we certainly have a negative bias, so SPY may look for a stronger support (Fib?). For the time being, MTFS is not very bearish, hence the lower part of the [150-156] range is still valid.

Weekly: probable congestion - Very low significance level, due to MTFS divergence.
Entropy is looking OK, but MTFS indicates continuation of this situation of congestion with a slight upward bias. Watch for divergence and possible double-top.With such a low significance level, one should rather take cues from lower time frames.