And you know what else needs some backup? Yep, you guessed it, the old Baltic Dry Index (BDI). My last post on the BDI was back in October (If the BDI is a Leading Indicator ...). It turns out it needed to make one more high, and in doing so went up to the 38% retrace line and a large resistance zone and turned sharply back down.
This week it confirmed the downtrend by breaking through its first small support. Larger support lies just a little bit below that. If the next support is broken ... look out below.
Additionally, I am continuing with the "Leading Indicator" pun for the BDI. Some still maintain that it is a leading indicator (which is debatable), yet it began its turn down nearly 2 months before the current correction in the equity market. So again I ask, if it is a leading indicator, what direction does it seem to be forecasting?
.... your call dude.
And the title, besides being a pun on the Baltic Dry Index / BDI symbol, is taken from Leela's call sign in Space Pilot 3000 from Futurama. Good times :)
