IBB
335.11
-0.86
-0.26%
 
AAPL
155.98
-3.78
-2.37%
 
TVIX
8.67
-0.11
-1.25%
 
XIV
110.81
+0.89
+0.81%
 
TNA
66.32
-0.23
-0.35%
 
TZA
13.32
+0.05
+0.38%
 
UVXY
15.83
-0.24
-1.49%
 
NASDAQ
6605.067
-19.153
-0.2891%
 
S&P500
2562.1
+0.84
+0.03%
 
NYSE
12380.323
+9.303
+0.0752%
 
IBB
335.11
-0.86
-0.26%
 
AAPL
155.98
-3.78
-2.37%
 
TVIX
8.67
-0.11
-1.25%
 
XIV
110.81
+0.89
+0.81%
 
TNA
66.32
-0.23
-0.35%
 
TZA
13.32
+0.05
+0.38%
 
UVXY
15.83
-0.24
-1.49%
 
NASDAQ
6605.067
-19.153
-0.2891%
 
S&P500
2562.1
+0.84
+0.03%
 
NYSE
12380.323
+9.303
+0.0752%
 

Death Cross Warning from Commodities

On a daily timeframe, Reuters/Jefferies Commodity Index <CRB> is about to signal an ultra bearish death cross. Since February 2016, price action has rejected the 50/100/200 simple moving average. The self-imposed production cut and freezes from OPEC has been merely an illusion with the physical market continuing to be oversupplied. Even in China the self-imposed Iron Ore cuts was also an illusion with Iron futures crashing >30% in recent weeks. The commodity industry has not rebalanced and this may signal the next deflationary wave is right around the corner.

<CRB> Daily death cross

<CRB> weekly rejects 50 and 200sma

<CRB> monthly descending contracting wedge appears to show rebalancing is not anytime soon, which signals deflationary trends for the coming years unless a major supply disruption occurs.