As indicated by A, the FBMACE tested the Bollinger Middle Band again on Monday, but still resisted by the Bollinger Middle Band, closing 22.99 points lower. Therefore, the Bollinger Middle Band is still the dynamic resistance for the FBMACE. The 4398 WinChart Automatic Fibonacci Retracement remains intact, and the support is still at 4031 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, although the Bollinger Bands Width has not expanded significantly, the immediate outlook for the FBMACE is still bearish biased as it is still below the Bollinger Middle Band. Nevertheless, since the Bollinger Bands Width has not expanded significantly, it has not confirmed the formation of the downtrend.

As circled at B, the Stochastic broke below 30% level, re-entering the short term bearish region. If the Stochastic should remain below the 30% level, the market movement for the short term is expected to be bearish biased.

As circled at C, the MACD histogram is still falling, suggesting the FBMACE movement is still showing some weakness. Unless the MACD histogram should form a Rounding Bottom, the weakening movement of the FBMACE is expected to continue.

Despite the Dow Jones Industrial Average index closing nearly 160 points higher, the FBMACE failed to break above the Bollinger Middle Band. This implies that the FBMACE is showing some sign of weakness, but has not form a downtrend yet. In other words, the FBMACE has to break above the Bollinger Middle Band in order to break away from this current bearish biased outlook.

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