FKLI - Fiscal Cliff "Happy" Ending Did Not Help Us Much-1/14/2013

Last Monday price action immediately took out the long position when it went below the top band and prior day low. Prices dangling around for the next few days until last Friday when it went below the top band with the Stochastic crossing down its 80's line and MACD's death cross. This effectively confirm a new sell signal. As I mentioned here last week on the high ADX which is above the DMI which I usually take it as the ultimate overbought signal. The ADX has now started to fall, this may confirm the end of the prior bullish trend.

Place stop at 1703 or 1707 which are its recent highs. If price continues to decline, then use top band as the new stop.
Though the weekly chart's Stochastic, MACD and DMI remain positive and rising, but the lowly flat ADX is keeping me unexcited. Weekly Japanese Candlestick is a black body which is not too encouraging for the  bull. The top band support should be watched closely for the coming week. Any breach below that level would bring a reversal.

The supposedly "happy" ending of the Fiscal Cliff certainly help the local bulls much. In the first place it was nothing but a political show put up by both the American political party. As there are many alternatives to resolve the debt ceiling problem, so most American financial market players just yawn it off, It seems only the Chinese "experts" were getting very excited about it as they thought that would spell the end of the great evil American capitalist/imperialist domination on the world. Sorry chaps, it did not happen. As it was merely a show, so their "resolution" did not help the local bulls move much further. It was already reflected in the chart.