KCPO:- Selling has stalled , but is this the end ? 1/2/2010

The selling seems to have stalled last week as prices did not go lower. The ADX has turned flat again after rose for a day. Though the Stochastic has stayed below the 20's signal line, I note the MACD is below the zero signal line, so I would NOT "hope" for any return of the bull yet.

Place stop at 2478 while waiting to see whether this market will collapse again.

 
The weekly chart ADX is falling again which is telling us the prior trend has ended. And since it is now below 20's, it is also telling us there is no trend in this market. The MACD has started to turned down but remain positive. The Stochastic has just crossed down its 80's signal line by which is offering an initial sell signal.

Meanwhile price stays below the upper Bollinger Band but still holding above the middle band which is effectively the 20 periods moving average. So this looks like another of difficult market situations for position trading, I would look for a break below the middle band for additional sell signal. And the best method I would apply is to wait for the D- to go above the prior peak formed the D+ which I marked out on the chart. I would add on to shorts positions once I see these coming in.