FKLI:- Something Big May Be Nearer ! - 5/9/2011

 

Is this the "something big" that I mentioned last week ? It seems to begin to look that way as both the Stochastic and MACD have turned negative and falling. The MACD has just fallen below its zero signal line which is usually a more confirming bearish sign. Of course the most interesting item here is the rising ADX which may be the beginning of a new trend. But I would like to see the ADX goes above the 20's signal line to reinforce this new trend.

Place stop at 1518. If prices manage to close back in between the upper and lower Bollinger Band , this may mean the market may NOT ready for a big move yet. This is because the weekly chart is not supportive of this move yet.

The weekly chart  ADX continues to fall. It is now at a lowly 12's. And prices are still stuck within the band. Both these items mean it is still a sideway market. The Stochastic and MACD have begun to compliment each other as both of them are negative and falling. This would mean it will be prudent if you were to play the sell side rather than the buy side.

I think by the coming week we should have a clearer picture of the market's next direction. Of course the big picture remains more bearish biased, so I would pay more attention on any new sell signals. You should also pay attention to the US Dollars. If it successfully recover against other major currencies, it may signal the end of the bull in many markets. Hence my "something big" thinking is still holding.