Working jsFiddle
Here is how to handle circular selection:
if (e.keyCode == 38) { // up
var selected = $(".selected");
$(".services li").removeClass("selected");
// if there is no element before the selected one, we select the last one
if (selected.prev().length == 0) {
selected.siblings().last().addClass("selected");
} else { // otherwise we just select the next one
selected.prev().addClass("selected");
}
}
css:
.services li.selected {
background-color: grey;
}