CRB Index Reminder (335.07)

In a blog comment posted on October 13, 2005, I pointed out that the CRB Index had slammed into all time high resistance that has been in place since 1980. Since then, the TSX Index and a number of important commodities have set back sharply from recent highs.

It is now obvious that this CRB resistance roadblock is real. The commodities disgorgement is in high gear on the downside as I write, and we may be looking at something more than a short term selloff.

On the other hand, precipitous selloffs often retrace on the upside equally quickly, long term top or not. I'm watching my unique price momentum models carefully to see if I can detect a short term low that will produce a trading opportunity.

CRB long term resistance is very, very important.