KCPO - Expect Consolidation Or Some Retracement -1/7/2013

 
This market consolidated the whole of last week and we may see some retracement in the coming week. Since the ADX has been flat at 22's, I am paying attention to the Stochastic. It has gone into the overbought zone and coming down, thus my expectation of some retracement or consolidation. I am placing stop at 2454.

I will sell if price closes below the top band with the Stochastic crossing down its 80's line. My heart is still with the bulls but I will trade any new signal that surfaces.

The weekly chart's Stochastic and MACD stay positive and continue to rise. Price is a black Japanese Candlestick but still managed to stay above the bottom band. The most assuring item would be the ADX continues to fall above the DMI, this is a more solid confirmation that the prior trend has ended. But I need to see the D+ rises above 20's in order to see some strength to the bulls.

Many thought with the Fiscal Cliff "resolved", markets would naturally go up. But it seems that is not the case. Gold drops like a rock, so was wheat and US Dollar mysteriously strengthened.  Maybe there will be more "cliff" to fall over ?