Thursday, December 20, 2007

Market Outlook SPY for Dec 20th '07


Dominant TF: 60mins & Daily
Swing: DN-DN-UP (from UP-DN-UP)
Cycles: up - good fit - low to average significance
Market Direction: No change in overall direction just yet, but a support must be found soon

Swings oscillate a lot on all 3 charts, indicating a key level nearby.

60mins: congestion to only moderatly up
MTFS and Entropy indicate congestion to a trading range on this triple witching day. Slight upward bias.

Daily: support has been hit but congestion is likely, no excessive optimism just yet.
Same as the day before:
Bar is still red, MTFS and Entropy are not looking fantastic, so we have to wait for the support to be confirmed. MTFS lines being in median territory, there should be any major pressure either way, direction coming from line gradients.

Weekly: Congestion & Volatility
MTFS is unreadable because of the low significance level, hence one should not pay too much attention to the lines down gradients.
Swing is oscillating again indicating we might be close to a key level at this point in time. Caution should therefore be exercised.