Crude oil prices fell sharply in July, especially Brent Crude [pink] which is testing support at $104/$106 per barrel. Breach of that support level, or $98/$100 for Nymex Light Crude, would signal a primary down-trend.
Commodity prices have weakened in sympathy, with Dow Jones-UBS Commodity Index falling sharply since breaking support at 133. Expect another test of long-term support at 122/124. Reversal of 13-week Twiggs Momentum below zero strengthens the bear signal.
Retreat of the Baltic Dry Index — which reflects bulk commodity shipping rates — to its 2008 low, shows similar weakness for iron ore and coal.
Waning demand from China is driving down prices.