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The Commodity Research Bureau Index (CRB) had a massive rally from the 2002 lows to the 2008 highs. Then the index fell over 50%. The 2009-10 rally has now taken the index to the 50% retracement level as well as hitting two key resistance lines at (1) above. Could a rather large “Head & Shoulders” pattern also be at hand?
Speaking of a “Head & Shoulders” pattern….Is one taking place in gasonline? (see post here)
The question, per is the a rally in a bear market is based upon the fibonacci and resistance situaion in the chart above. It has nothing to do with fundamentals. I ended the year with a quiz, the chart was the TIP ETF (see post here). In the answer I ask another question, wondering if TIPS were hinting that inflation shouldn’t be that big of a concern.
Time will tell if this was a rally in a bear market and it might not take too much time with the “Power of the Pattern” looking to be at hand here!