Brazil’s Bovespa index disappointed after promising a breakout above 60000. The index failed to break through resistance, instead falling through support at 58000 to warn of another test of 48000. Rising 63-day Twiggs Momentum and Twiggs Money Flow, however, continue to indicate that the index is forming a bottom.
CRB Commodities Index is testing the descending trendline at 320. Breakout would suggest that the down-trend has weakened and the index is forming a bottom; respect would indicate another test of primary support at 295. Breach of the long term rising trendline would warn of another test of 2009 lows at 200.
Brent crude is also testing its descending trendline, at $110/barrel. Respect would signal another test of primary support at $99, while breakout would suggest that the down-trend has ended. In the long-term, breach of the rising trendline would warn of a decline to around $70/barrel.
