FKLI - This Market May Be Getting Ready For a Big One- 28/12/09

The daily ADX continues to descend lower and now it is at a miserable 14's. Though last week triggered another new short signal, but price has not gone down. But neither it was  stopped out.

An usually more reliable signal to handle such difficult market situation would be to watch out the D-. It would need to expand outward to go above its prior peak (as marked out) in order to get a confirmation for another sell signal. On  the other hand if the D+ is to expand outward and go above the prior peak of the D-, then it would be taken as a new buy signal. But you should take note the MACD has already crossed down its zero signal line, so a bearish inclined mentality would be more prudent.

The weekly chart is getting increasing bearish as prices are unable to climb back up above the upper Bollinger Band while the negative MACD continues its descent. The Stochastic has crossed down its 80's signal line which offers an initial sell signal.

Overall this market's readings are continued to deteriorate as its daily and weekly indicators are negative. But since we are now at the end of the year and with holidays abound, the market has not taken any directional moves yet. So I would think  you should also leave this market for the time being and come back after the new year . But having said that, it does not mean you should ignore this market completely,  with the extremely lowly ADX and the multiple time period bearish divergences, I would say an excitable and profitable time would  arrive soon.

If you are still in the earlier short positions, keep 1269 as stop.