FKLI - Is There A Monster Looming Behind The Cupboard ?- 3/19/2012

I kept myself out of the market last week because I became a bit confused as what this market wants to do. In the coming week I am ready to engage new shorts when if price closes below the middle band of 1570. As the ADX continues to stay flat which mean there is still no trend in the market, I am willing to test out the market because both the MACD and Stochastic are falling, the dominance of D+ over the D- is fizzling out. Of course I cannot promise the next trade will be profitable, but I will be taking the trade because more evidence is gathering for a short. If done, place stop on the top band.



The weekly chart is showing the bull losing its steam. The Stochastic is falling but still manage to hold above 80's. The MACD is still rising and positive. (contradicting indicators! ) The DMI bull seems to be weakening. ADX has begun to fall again. The Japanese Candlestick is a Doji which signifies indecision in the market.I would watch out for a Friday's closing going below the top band of 1560 for a possible new bear cycle .

Both the daily and weekly chart is a classic reflection of the market mentality now. Everybody is looking at everybody else and think:- "hey, what should we do next?"  So with this, either you keep out of the market or you go in and test the water with a small number of contract. With the presence of a bearish divergence, I would think  that if is with a little sudden noise, the market will erupt into a rampage.