Friday, August 31, 2012

Commodities Index Building Strong Foundation

CRX is taking it’s time forming a bottom and it’s starting to really look like it’s laying a strong foundation of support. That should allow it to bounce off that $790-800 level and springboard higher in the fall. Watch the RSI trendline as it shouldn’t break that support and I would really want to see it pierce that 70 level and beyond to display superior relative strength.

VIX has completely worked off it’s oversold state and it is in a position where the markets could rally. Note has the SPX has basically moved sideways as VIX rose.

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