Yesterday, we said, "This week, we are at the cusp of commodities, oil, and
gold making a major trend change to the downside, or holding supports and having
the trends in place. This is a very important juncture because of Bernanke's
fight to control inflation and bring it down. It impacts what he does on interest
rates, and that effects the economy and the stock market."
While Tuesday showed that commodities, oil, and gold were all bouncing up
off supports, yesterday's market action brought them all down to retesting
their support levels again.
This is really an important event because it could mark the end of a multi-year
up trend.
Consider the possible implications...
If they all break support, you have to think of the turmoil this could create
in the market as investors rush to the selling line to dump commodity, oil,
and gold stocks. This would cause a major sector rotational change in the markets
and portfolio rebalancing.


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