CRB Index (331)

On October 19, 2005, I said that the Commodities Research Bureau Index had slammed into resistance that had been in place since 1980. Very important resistance, and we are witnessing the correction that I expected. However, I want to modify the tone of my analysis.

It may take some work to penetrate this long-standing resistance level - something more than what I would call a short term selloff. Having said this, I'm not a bear on the long term outlook for commodities.

If we take a good rest at these price levels before moving on, most resource producers will make money hand over fist while waiting for the next market leg up.