The weekly chart – above- of the CRB commodity index has broken its 3+ year downtrend. It’s above its 200 day MA, and has shown strong comparative relative strength vs. both the S&P 500 (second from bottom pane) and the TSX (not shown). Shorter termed momentum studies suggest an overbought condition, the longer termed / lagging oscillator MACD is looking healthy (bottom pane).
Leading the charge have been oil, natural gas and precious metals gold & silver. Energy has just entered its seasonal strongest period of the year. Curiously, copper continues its underperformance, having broken down from a large symmetrical triangle about a year ago. Its forming an ascending triangle right now, and it’s too early to predict where that might lead to. While a larger cycle on commodities (see my bloghttp://www.valuetrend.ca/?p=672 ) may put future pressure on the broader CRB trade, it’s obvious that the current picture has become at least near-termed bullish for the broad commodity markets.