US market rally after a solid report on November housing starts. Asia market join in, with strength for exporters and resource firms, as renewed optimism about the health of the global economy boosts risk appetite.

However, Bank of Japan says economic recovery 'paused' and keeps policy rate unchanged. We suggest investors to stay sideline for the moment as market tends to be very choppy. With great uncertainty lying ahead before 2011 ends, we believed that market is consolidating. On the long term chart, market is pointing on the downside with resistance at 2700. A break down of 2600 will mean more downside for the market to challenge 2500.

Sentiment --> Bearish