From Marc to Market:
This Great Graphic, created on Bloomberg, depicts the CRB Index, a basket of commodity prices.
The technical picture has deteriorated, and the price action in the
coming sessions is particularly important in determining outlook.
The CRB Index put in a double bottom. On January 20 and February
11 lows were set just below 155.00. The neckline of the double bottom
was created in the rally between the two bottoms. It is found near
168.00. The measuring objective is found by rotating the pattern on
its neckline. It is near 181.00. On March 18, the CRB Index made a
high just below 179.00, just ahead of the 50% retracement objective of
the decline since the mid-October 2015.
The CRB Index gapped lower on March 24 and has not filled the gap today.
It is found between last Wednesday's low (~173.20 ) and last Thursday's
high (~172.57). It had gapped higher on March 17 but filled the gap
on the large sell-off from March 23. If that first gap had not been
filled, it would have left a bearish island gap in its wake. ...
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