Friday, October 05, 2007

Market Outlook RUT for Oct 5th '07

Dominant TF: Weekly and 60mins
Swings: UP-UP-DN
Market direction: neutral to mildly UP. New target: 843.

60mins: mildly UP, possible congestion.

AdStoK is still bullish but showing signs of slowing on this 829 level, and Entropy has lost about all its steam. Economic news could just as well trigger a retracement to 820 or help it rise to 843.
Note that MM levels have aligned to daily ones, i.e. strong MM resistance level at 875. 812.50 is now a strong support level.

Daily: Mildly UP.

AdStoK is still bullish and should carry on its bumpy ride to higher levels now that the key 812.50 level is behind us. The white line is now seriously overbought, so a minor retracement is possible without affecting the overall trend.
Current resistance at 829 is still valid, the next ones being: 843 (stronger) then 860 and ultimately 875.

Weekly: mildly UP
Entropy and AdStoK now show more clearly the way up to 843 over the next few weeks. The Swing indicator should turn around any time now. It has so far been a good representation of the hesitations we've had in lower time frames.

Market Outlook NDX for Oct 5th '07

Dominant TF: Daily
Swings: DN-UP-UP
Market direction: neutral to mildly UP, until 2125 resistance is truly tested. Probable slowdown then.

60mins: not much of a change change from yesterday: possible hesitation until new resistance level at 2125.

AdStoK is bullish but uncertainty is visible in the vagaries of the white line. The reason is that after such a strong bull run, NDX has been stopped on the MM stall level, ahead of the (too) expected MM resistance level. NDX will probably try and hit the same stall level then 2125 but we are in a narrower trading range now.

Daily: Neutral. Possible congestion or slowdown on coming resistance, due to extreme overbought situation.

NDX has started to slow down ahead of the strong MM level (2125). Entropy is very high but coming down a bit now, confirming an incipient slowdown. However, it is far too early to detect any major change in direction ahead.

Weekly: mildly UP to UP

AdStoK lines should soon meet, but significance level is low at this time frame, so this is nothing more than a background information.
One can check for a possible change in dynamics on AdStoK line crossover, which could happen around the much anticipated 2125 level.