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.
* Target calculation: 295 – ( 325 – 295 ) = 265
[...] Commodity Prices and the S&P 500 (Gold, Stocks, Forex) [...]
[...] 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 [...]