(Click on the pictures to enlarge)Odds very much favor, that the Brazilian Bovespa Index has topped for now and as red wave [C] progresses. A break below 54,881 will call for a fall to at least wave iv of red [B] at 48,261, but I do expect this level to be broken too.
Brazil is the king of commodities, you name it they got it. China has done a lot of deals with Brazil in the last 6-8 months, but Chinas commodity stocks are now filled so it's time to back away from commodities alltogether.
Looking at the Baltic Dry Index, we can see that Global trade has been weakning since begining of June. Not many in the stockmarkets has noticed that, but I'm sure they will in a short while. The Baltic Dry Index is currently sitting at the supportline from December 2008, but when it breaks, there isn't much support before the bottom of wave b of red [B], which is 40% below the current level at 2,437.
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