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!

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past