Market Outlook RUT for Dec 18th '07

Dominant TF: Daily, 60mins as well as lower time frames
Swings: DN-DN-DN (from DN-UP-DN)
Cycles: up - average fit - average significance
Market Direction: congestion with a lower bias, but caution on this key 740 level


60 mins: Key level [740-750]
MTFS and Entropy are still pointing lower on this key level.
This support level should be fought, but no significant rebound expected before negative entropy is exhausted.
There is a support level at 734, but more generally: breaking 740 would be "dangerous".

daily: trading range is likely, but support must be confirmed.
No change from yesterday:
MTFS and Entropy are again weakening further. We have the final confirmation of the failed recovery pattern mentioned about 2 weeks ago. IT is likely that these [740-750] levels will be be fought, and who knows whether bears or bulls will win. At the moment, only the cycle indicator points up, and we know it is not always a reliable predictor.
Trading range in the [750-780] range to [740-790]

weekly: Same trading range [750-875] with lower bias
Swing is down and RUT is certainly not looking too good. 740 is Fib PR2 (61.8%). RUT has always bounced on PR2 in the last 2 years, but one should remain very cautious still. The next strong support level is indeed much lower....