FKLI:- No Direction But Watch The Hidden Bear - 4/25/2011

The bottom Bollinger Band did provide some kind of support as prices bounded off that level and went back to retest there on last Tuesday after the great S&P downgrade on US debts idiocy. The continuing falling ADX provide confirmation that this market is caught in another range. Please take note the ADX is now at 14's. Just as the contradicting positive Stochastic and negative MACD is also confirming a lack of direction. I have drawn 2 horizontal lines to mark out its recent range, any violation beyond them should point us to its next direction.

The weekly chart is also displaying all the classic signs of a trend less market. The ADX is still falling and now it is at 14's. The MACD is negative while the Stochastic is positive and continues to rise. Prices is caught inside the lower and upper band.

As both the daily and weekly chart are displaying all the classic signs of a trend less market, so maybe you should take a rest and stand aside to wait out for 1-2 weeks to watch out for some new clearer signals before deciding to buy/sell. But as  mentioned in my last few essays, because of the presence of a bearish divergence, I would be more biased toward a bear market over a bull. Even a new upmove happens again, it would probably just another stale bull's attempt.