Commodities retrace

The Dow Jones-UBS Commodity Index is retracing to test its new support level at 134. Respect would confirm the primary up-trend, signaled by the earlier breakout and recovery of 13-week Twiggs Momentum above zero. But a falling Shanghai Composite Index warns of weakening demand. Reversal below 134 would suggest a bull trap.

Dow Jones UBS Commodities Index

* Target calculation: 128 + ( 128 – 122 ) = 134