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Two quality inflation indicators, Crude Oil and the MS Commodity Index (CRX) have moved a good deal higher over the past couple of months (Crude Oil up 20%- CRX up 11%). These rallies took place prior to the announcement by the Fed this past Friday.
From a longer term perspective (more than the past 90 days), both Crude Oil and the CRX have created a series of lower highs and they both have struggled at falling resistance lines.
Now both of these are up against falling resistance lines again, at Fibonacci resistance levels.
Many suspect the Fed would rather deal with inflation than deflation. The current technical situation reflects an important price juncture to whether the rally in Commodities and inflation has peaked or if the printing of monies will continue the short term rally in Crude oil and the CRX index.
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