Commodity Prices Break Support
05/18/2010 9:42 am EST
The CRB Index has dropped sharply over the past two days and has closed below its still-rising 200-day MA. There is next support at 450 and the uptrend from the 2009 lows is now in the 445 area. The CRB peaked at 505 in January, which was the major 61.8% retracement level, so we can't rule out that the gains from 2009 were just part of a bear market rally. There is strong resistance in the 475-480 area.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.