Is The Commodity Correction Over?
May 26, 2011 at 09:21 AM EDT
The S&P 500 could not hold above the 1340 support level we have been watching, but so far the failure hasn’t been disastrous. The index has crossed above and below its 50-day moving average multiple times the past ten weeks. This indicates slowing momentum but not necessarily an impending bear market. This week’s main story is commodity prices. A rout in early May pushed most energy, grain, and metals contracts down sharply, but now we see crude oil back over $100 and gold once again north of $1,500. Corn prices rallied more than 7% in the last two weeks. Even cotton and sugar began showing signs of strength. All of the above could just be short-covering or a “dead . . . → Read More: Is The Commodity Correction Over?