The CRB Commodities index is headed for a test of the 2010 low of 250. A 63-day Twiggs Momentum peak below zero warns of a strong primary down-trend. Divergence from the S&P 500 index warns that stocks are likely to fall, following commodities down — at least to their 2011 lows.
* Target calculation: 290 – ( 330 – 290 ) = 250
An interesting chart combination. Is it possible to have it displayed over a longer period to look into the correlation a bit further
Here is a 20-year chart, showing large divergences over the Dotcom boom and in 2007. Unfortunately I don’t have more history available.