Commodities have been on an absolute tear since Dec 2008 with a return of around 89% on the CCI over that span. However, this market may finally see a correction. The market just recently tested the March 7th high and has sold off since. It took 7 days from the March swing high down to the March swing low and took 25 more days to get back and make a new swing high. This negative skew is a bearish sign and shows stronger downside momentum. Over the past couple weeks we formed a H&S Top formation on the daily chart at a previous resistance point. We got confirmation today with close below the neckline. The downside objective is ~ 658.07 with stops @ 687.74. The weekly chart also shows some bearish signs with a negative divergence on the RSI. If this pattern holds to form, then you should see a big correction in most off the commodity markets including the metals.
