FKLI - Is It Over Yet ? No, It May Just The Beginning - 10/20/2014

 

The market continued to fall during most of the week except Friday's strong rebound. Does this means the selling is over ? I do not think so but I would place my stop at above the bottom band. The MACD stays negative and seems to trying to turn around. The Stochastic is below the so called oversold zone and has already begun to hook up. I will be keeping an eye on this but I will not place too much weight on it as the ADX is still rising and it has now reached 32's. This means there is a strong trend in the market now and that trend stays intact, so I would be placing more weight on the MACD instead. The DMI stays negative but the D- is at its extremity, so I think it would prudent to think that the market may see some upward retracement soon. 


 

The weekly chart continues to yield to the bear. The MACD has just fallen below the zero line. This means the the bear cycle has officially begun. The Stochastic stays negative but it has turned flat. This could mean the market may be going into a consolidation. The DMI is also negative but as in the daily chart, the D- has now reached its extremity of 35's. So some form of consolidation or even some upward retracement should not be ruled out. The ADX has continued to rise but it is still below the 20's level. The weekly Japanese Candlestick is a Falling Window which usually mean a continuation of the current bearish trend.

There is nothing to tell us that the overall selling has ended but since the market has gone a bit of extreme, so some consolidation and even some kind of upward retracement should not be ruled out. For the big picture, I remain as extremely bearish as ever.