CRB Index (308.02)

On June 1, 2005 I said I was looking for a rally in a strong long term uptrend. After that, the index approached 320, and rolled over into a short term correction.

Uptrending intermediate term support stands at around 295 as I write. If we are to see another leg on the upside after this correction is over, it looks like we may need several months of base building in the 300 area to work off our current overbought status. A short term breakdown below 295 would be unhealthy.