Bloomberg Commodity Index Signals Warning

On a weekly timeframe, the Bloomberg Commodity Index <BCI> is in the process of a lead-in phase of an overall bump and run bottom formation. The goal of the entire structure is to rebalance the auction to produce a reversal. What worries us is that the auction is not rebalanced and may lead to another bump phase, which would signal a retracement of the 1Q16 to present move. Deflationary times in commodities still persists and the recent iron ore crash may spur downside momentum.