Potential rebound in the making (from Kayhian) Markets- That this is a trend reversal in global equity markets is a moot point. At the very least, we are witnessing an unwinding of the upmove from June lows. The question now is whether there is a catalyst for a rebound. The Japanese yen, which has been strengthening sharply against the US dollar could potentially stabilize and this could provide a catalyst for a rebound. The 7 day average true range, which is indicative of volatility is close to reaching a 1 year high level and from a statistical basis, such a sharp rally in the Yen will almost certainly give way to some sort of consolidation. Any such consolidation could provide for a temporary relief in equity markets which have been mostly affected by the unwinding of yen carry trades and simultaneous shorts on the related currencies and equities. Singapore bourse- This is a trend reversal and the index will eventually head lower as the ST index has now declined in a 5 downward waves. However, t (more...)