Friday, January 04, 2008

Market Outlook RUT for Jan 4th '08


Dominant TF: 60mins & Daily
Swings: DN-DN-DN (from UP-DN-DN)
Cycles: opposite directions and low significance level...
Market Direction: down
Position (60mins):
Short: some may want to hang on, but nothing wrong with taking profits.
Flat: it would be cautious to stay a little longer on the sideline
Long: are we looking at the same chart !!!?!?

60mins: lower, but possible congestion
750 broke late in the day, so check now for support around 734 (MM + recent lows). MTFS is still bearish, but is now close to oversold level.

Daily: same volatile environment.
MTFS now points lower yet since lines crossed end November RUT has followed a 'wavy' move upward, and could eventually bounce again within the same difficult, volatile environment. A bottom must be found first (734?).

Weekly: lower bias
Not looking good, but MTFS green line is holding fairly high so one can anticipate 750 to hold for now.