JB et al,

As often happens, the Asian markets have reacted badly to the retracement in the US yesterday. The BDI and almost all commodities are off overnight.

The BDI range is now forming into a nice wedge pattern aptly described here in the third chart down.

http://investmenttools.com/futures/bdi_b...

How that resolves itself over the course of time should tell us a lot. In the meantime, the BDI, however, isn't helping. The $USD is equivocal. It is currently in a stall at 50 RSI on the 3 month chart and has absolutely been respecting its 50 DMA (like Mr. Vix). Should there be a breakout to the north into the area between the 50 and the 200, the broader market would take notice and not a good one.

US futures are largely neutral on the morning.

Regards,

Peter