FKLI - It Is A Walking Dead Market - 7/2/2012

The market went up to test 1606 and 1613 but failed to hold, instead came back down and go sideway for the remaining of the week. The ADX deteriorated and started falling again to 17's. The Stochastic has turned negative but MACD remains positive , so again we are having a contradicting pair of indicators. The falling and low ADX and contradicting indicators are confirming that this market is caught in another sideway mode. I would avoid taking up end of days positions but instead of go trade the intra-day charts.

I am drawing 2 horizontal lines to mark out its recent range, any breakups or downs beyond these areas would then warrant new attention to this market.



The weekly chart Stochastic continues to rise while the MACD also continue to turn around. Though it remains negative. The ADX is still flat at 13's, this is the 3rd week it has remained at this level. So basically I am still saying that this market is 'dead".
I would need to see price  to close above prior week's high of 1616 to feel that a new trend may be back in force.

Last Friday's new development from the EU seems to be pointing for another "solution" that would finally resolve their crisis. Would it really resolve their problem is still suspicious, but most probably this "optimism" will help our market to do another pushup, But it remains to be seen whether it is a sustainable one.