CRB Is At Support

If you've been following the commodity markets, you already know that oil and copper have been selling off rather sharply. Gold is even starting to breakdown here.

Above is a 3 1/2 year weekly chart of the CRB index. For those of you who are not familiar with the CRB index, think of it as the dow jones industrials but for commodities. Right now the index is sitting on a huge support level. Do we buy it here? My answer is let the market tell us what to do. If a weekly bullish engulfment bar forms here I will buy, but right now it looks like this level might be broken. Gold is now showing signs of weakness and alot of gold stocks are forming head and shoulder topping patterns like GG for example. If gold starts to collapse here, then most likely this crb support level will be broken. We'll just have to wait and see how the CRB handles this level.