FKLI- 1/3/09

With last Friday closing price went beneath the weekly's lower Bollinger Band and the Stochastic crossing down, this market may see a new bear cycle. Since the weekly Bollinger Band has been squeezing, so we may expect this new round of selling to be intense.

The daily chart's Stochastic may has gone into the oversold zone but with the ADX rising fast to 18, we may to watch the MACD rather than the Stochastic. The MACD continue to fall and the gap between MACD and its moving average seems to be widening, so I would assume that the bears may be gaining more strength soon. If you have sold this market, keep 857 as stops.