KCPO:- Market Is Dead. Stay Aside And Watch- 7/6/2010

 

Another week of the market going nowhere. The flat ADX confirms that. Now both the MACD and the Stochastic have turned positive and price even stay above the middle band, but with the lousy ADX, I would prefer price to close above its recent fractal high of 2501 before get excited. The level would also be above the upper band. It seems to be another short term up move may be possible.

The weekly chart remains same as last week. Both the Stochastic and the MACD continue to fall. The Stochastic may be crossing down its 20's signal line, I wonder would we see some strong selling emerges in the coming week ? The weekly ADX is still falling and it is now at 14's which is telling us the market is dead.

Now we have the daily chart which is slightly bullish but the weekly chart remains bearish as ever. But we do have both the periods' ADX dead, at least we can be sure that there is NO trend in this market. So you may not want to place any positions yet but just keep a watchout. I am very interested to see what will happen after these long periods of dead ADX.