The CRB Index ($CRB) advanced with the stock market in 2009, but hit resistance from broken support and formed a monthly outside reversal. This is also known as a bearish engulfing. The combination of resistance and reversal could cap this rally. A monthly close below the rising 10-month SMA would signal further weakness.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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