4 Feb 2009
Although ADL shows sign of weakness the index is still hovering within the 1700 window. Slightly divergence shows between STI vs ADL. There is risk of breaking down in term of STI and ADL which causes a strong downward pressure.
When looking at BDI, we see strong rebound since last year. We are only at about 10% of the 2008 peak which may show more upside. Breaking out from flag channel (one month period) suggested stronger upside move. However, we are anticipating some throw back before BDI goes into another level.
A fail of breaking out from 50MA, USDJPY turns out of favor. Short term wise, USDJPY break down from flag since 22 Jan 2009 which is a bad sign. A good thing is there are quite a number of tail formed when USDJPY tested the recent trendline support suggested the immediate downside is more resilience.
