This chart looks at Commodity ETF (NYSE:DBC) over the past 12 years along with 2- and 5- Year yields over the past couple of decades.
DBC peaked in 2007 and has created a series of lower highs ever since. The rally over the past couple of years has DBC testing falling resistance that started 11 years ago.
While commodities are testing long-term resistance, the same can be said about interest rates too!
The yields on the 2- and 5-year notes are testing long-term falling resistance as well at each (1). The last two times that yields touched these long-term falling resistance lines was back in 2000 and 2007.
What commodities and yields do at each (1) will send a monster macro messages to commodities and T-bills as these price tests are seldom seen.
And what bonds and commodities do with these resistance lines will become very important to stocks as well.