The CRB Commodity Index lost over half its value in the 2008-2009 decline and then proceed to rally up to its 61% retracement level in May of 2011.  The 61% Fib level stopped the CRB on a dime!  Despite Benna-Clause attempting to inflate the world, the CRB has declined over 20% in the past 14 months!

I shared the above chart with Premium Members a couple of days ago, reflecting that the CRB hit its 23% Fibonacci and falling channel support line at (2) about 5 weeks ago and has now rallied up to its 38% Fibonacci level and falling channel resistance at (3).

Does this pattern reflect a “counter-trend rally peak” in the Commodities complex, at falling channel and 38% Fib resistance?  It very well could.  A further decline in the CRB from here, would suggest the Global deflation theme remains in tack!

If you would like information on the benefits of being a Premium Member, send us an email to [email protected] and we will email you full details on the benefits, unique charts and trading ideas Premium Members receive daily.

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