Commodity prices and the S&P 500

The CRB Commodities Index is testing primary support at 295 and respect of the zero line (from below) by 63-day Twiggs Momentum warns of another primary decline. Target for a breakout would be 265*. Divergence between commodities and the S&P 500 suggests that stocks are over-priced, with the Fed doing its best to depress bond yields and pump up stock prices ahead of the November election.

CRB Commodities Index and S&P 500 Index

* Target calculation: 295 – ( 325 – 295 ) = 265

2 thoughts on “Commodity prices and the S&P 500

  1. [...] Commodity Prices and the S&P 500 (Gold, Stocks, Forex) [...]

  2. [...] EDT Tags: Australian Dollar, Canadian Dollar, CRB Commodities Index, South African Rand Weakening commodity prices are dragging the Australian Dollar lower against the greenback. Breach of support at $1.02 [...]

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