Click on Chart to EnlargeThe CRB commodity index broke the May low with a large gap and low close on Thursday. I mentioned that this should be taken as a longer term bearish signal given the context. The rectangle boxes are the same in price and time, so it may give an approximate target for how long this move down will last before another significant rally attempt.
There may be some initial push back here, but as long as the "stop level" shown on the chart holds, there is a bearish bias on commodities. Given the long lasting correlations over the past several years, this would mean stocks down and US Dollar up if commodities trend down.
No comments:
Post a Comment