KCPO - Retracement Begins - 2/18/2013

 
My stop placed at the top band minus 2 points was taken out when the market reopened after the festive holiday. And on the same day a new sell signal was triggered when price went below the top band with the Stochastic went negative and below its 80's signal line. I went short the next day when price went below the signal day low. I am placing my stop at the top band plus 2/3 points. When if the market goes further down, I will adjust my stop the middle band plus.
The MACD has gone negative but the DMI is still positive. The ADX has begun to fall which may be confirming the end of the prior trend. 



The weekly chart's Stochastic and MACD is still positive and rising. But price is unable to stay above the top band and has now closed below the top band. This development is really unfavorable to the bull. If I am trading by this chart, there is no new sell signal yet because the indicators are not complimenting this price below the band sell signal. The Bollinger Band continues to tighten, so I would call this as another sideway market first before calling it a bear. But as long as the ADX which is above the DMI continues to fall, it is confirming that the prior bear cycle has ended.
As more market participants return to work in the coming week, the market may see more action.