Commodities fall, stocks follow

The CRB Commodities Index is headed for a test of the 2010 low of 250 after breaking primary support at 295. The trough below zero on 63-day Twiggs Momentum indicates a strong primary down-trend. Divergence between the S&P 500 Index and commodities warns that stocks are over-priced and likely to follow.

CRB Commodities Index and S&P 500 Index

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

One thought on “Commodities fall, stocks follow

  1. […] Australian Dollar is following commodities lower, headed for a test of primary support at $0.96. 63-Day Twiggs Momentum below zero warns of a […]

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