Rising prices have hit consumers hard and disrupted balance sheets in corporate America.
Even more interesting is that we have inflation while the US dollar is strengthening. Crazy times.
In any event, two of the most significant inputs are energy (gas) and agriculture (food). Both of these (and more) play a hand in the overall Core Commodity CRB Index.
Today, we look at a long-term weekly chart.
As you can see, commodities rallied sharply over the past two years, reaching the 61.8% Fibonacci retracement level (resistance). At this point, CRB peaked—and it also coincided with the government inflation bill.
If support fails to hold at (1), odds increase that commodities will actually start cooling off. Investors (and consumers) sure hope so. Stay tuned.