FKLI - Market Stays Overbought - 4/7/2014

 
The market remains overbought but stumbled along and gained 7.5 points over the past week. If you had applied the prior day low as stop, then you would had got out on last Monday. But if you are applying the top band as stop, then you are still in the game. The Stochastic is now at 92+ and since the ADX is still at 13's, so I continue to watch this indicator for the next signal. The MACD remains positive and continue to rise. The DMI is same and now the ADX has begun to rise. But since it is relatively low at 13's, it does not excite me yet. As long price can stay above the top band, the market will continue to sneak upward.

 
The previous week's buy signal has been confirmed with price went higher than the signal week's high. Price remains above the top band with the Stochastic continues to rise. The MACD has also turned positive. The DMI remains positive with the D+ rises to 28's which is confirming the buyers' strength. The ADX stays flat which may be signaling a coming of a new cycle soon. Overall, the bull has found all his friends agree in unison. The next resistance will be at 1877.

The daily chart is getting overbought but the weekly chart is getting hot. My current thinking is that the weekly chart's bearish divergence setup stays intact, but the daily chart has none. And the market most probably will react to DJIA's fall, I do not think that is sufficient to kill off our market. Most probably we also do a correction as the daily chart is already overbought. For the intermediate term, I think I will just follow all the short term buy/sell signal until I can see something bigger loaming.