Wednesday, January 09, 2008

Market Outlook RUT for Jan 9th '08


Dominant TF: 60mins & Daily
Swings: DN-DN-DN (from DN-DN-DN)
Cycles: unreliable
Market Direction: probably lower still
Position:
Short: nothing wrong taking profit around coming support level
Flat: be patient
Long: you must be mad

60mins: likely congestion or slightly down.
Similar as yesterday and similar to SPY: RUT could hold around MM stall level at 704 or drift to 688.

Daily: congestion to down
While not overly bearish, the current situation with Entropy picking up momentum and steep MTFS lines indicates RUT going lower. It seems that 688 will be hit at some point.

Weekly: congestion to down
RUT has always bounced on PR2 (61.8% Fib retracement) but this time didn't. This confirms RUT is definitely in correction mode at least to previous lows around 670 - 680. We may also find guidance on Fib levels from 2005 or before.