KCPO:- Stuck In The Mud - 8/29/2011

As discussed here last week the market got stuck again. Both the Stochastic and MACD seem to be turning the corner, but so far both stay positive. The ADX has gone flat, confirming the current lack of trend.

But I remain mildly bullish as the bullish divergence stays intact. I would continue to place more weight on the buy side.

 

The weekly chart stays about the same as the previous week. The MACD continues to fall while the Stochastic is still struggling to go above the 20's signal line. But a new item here is that the ADX has just begun to rise, with prices below the bottom Bollinger Band and a falling MACD, I would be careful as the market may take another plunge. 

On the near term, I am still a bit on the bullish side of this market. But of course I would need to see a confirmation before jumping in. And I think we would only see something concrete after everybody coming back after the long holiday ahead.