FCPO - The Bears Testing The Market Again - 9/23/2013

This market has been a tough cookie to trade as the daily range challenged the extreme points of the market. I went back in to sell the market on last Monday when price went below the prior low. But on that day, market went back and close near the day's high and above the bottom band. I was getting very uncomfortable with the shorts position and was getting ready to abandon on the next day if price goes higher. But then on the next 3 days, prices kept do lower. But I continue to stay cautious and place my stop at the prior day high plus 2 points , especially now that the Stochastic has reached the oversold zone. The MACD has now dropped to near its zero signal line.If it continues to go down, I would get really worried about the bigger picture going back to the bears control. The DMI remains negative. The ADX has turned flat for the past 6 days, this is basically telling me that the market is still in a listless mode. But I watching out for the 2294 support, if it fails to hold, then more bears may jump in for the taste of blood.

 

The weekly chart's Stochastic and MACD stay positive and continue to climb and this is good for the bulls. But the DMI stays negative and price is now below the middle band. They are for the bears. The ADX is still falling, so the market fails to find any trend yet. But I have a feeling that it may go back to test the bottom band or its recent low again.

The big picture is still favoring the possible return of the super bull as the setups remain intact. But we need to see its recent fractal high of 2485 cleared off and also I watch its recent twice tested 2137 levels as immediate solid support.