FKLI:- Does The Market Has Anymore 

Strength ?- 6/6/2011

As confirmed by the 'dead' ADX, this market did not go far in the current period. I would just take profit at this moment and would not go back to long unless I see price closes above 1558 again.

The Stochastic has already crossed down but it is still above the 80's. Once it crossed down that level, look for a new short again. Also watch out for 1550 for support level.  Meanwhile the MACD remains positive and the ADX stays flat at 13's. The market is again playing the waiting game.

 

The weekly chart Stochastic continues to rise and the MACD seems to be turning the corner, it is getting increasing bullish as price managed to stay above the upper Bollinger Band for the 2nd week. But as in last week, I cannot get myself too excited over all these as the ADX continues to stay flat at 10's and the DMI is also staying above the 20's. Both these are telling me that whatever "bullishness" I see at the other indicators are really nothing to shout about at this moment.

The weekly Bollinger Band is continuing  to tighten, I continue to watch out for a possible explosive move soon. You should keep an sharp eye on the EU PIIGs crisis as it is still continue to get out of hand. The Castilla-La Mancha province of Spain(15.7% of the country area) just completely ran out of money to pay their civil servants and creditors. Compare to Greece, Spain's problem is something that George W. Bush would say:- "shock and awe" !