CLICK ON CHART TO ENLARGE
I shared that the CRB index was hitting its 50% retracment level and might have created a bearish “head & shoulders” pattern. (see post here) A few blog viewers correctly pointed out that the CRB index is “overweighted” towards oil, so I wanted to share an commodity index that weighted assets differently than the CRB index. As you can see, the charts do reflect a different look.
Above you can see that the CRX Index and a leading copper producer, after very nice rallies in 2010, are both facing overhead resistance at the same time at line (1) as the Dollar is attempting to break resistance (see post here) and the Euro is attempting to break support.
Bulls make money, bears make money and pigs go to a BBQ! Harvesting at resistance worked really well in 2010, will 2011 be any different?