The MS CRX Index (CRX) and the Commodity Reserach Bureau Index (CRB) sent quality messages to protect risk asset values and that the global economy was going to soften some back in 2008 and 2010, when they broke below rising key rising support lines (1) and (2) in the above chart.

Now the CRX and CRB are Rolling Over in Price… having created lower highs and are breaking below rising support lines at (3). 

 For whatever reason Commodities have been suggesting something different than the stock market of late.  The relative weakness was highlighted in the Mixed Signal post (see post here) when the Power of the Pattern was suggesting to listen more to the CRX’s price action of late than the 500’s action.

Basic Materials  and High Yield Junk bonds were sending signals of above average risk and concern back on 3/7  (see post here)   Since that post, both IYM and JNK are reflecting lower prices, while the broad market did not…..signals to pay attention too? 

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