Still no sign of life for commodities

An ominous development is occurring in the DJUBS Commodity Index, according to Walter Zimmermann,  Senior Technical Analyst at United-ICAP. He says that if the index fails to reverse higher from its long term up-trend support line (currently at around 117), the index could fall to as low as 91 or even 74.65. Zimmermann notes that there has been a lack of price reaction since the index first tested the support line on 15 October and that “there is still zero evidence for bottoming action”.

See chart of DJUBS Commodity Index.