Continuous Commodity Index in “No Man’s Land”

daily_cci.gifclick the chart to enlarge
The Continuous Commodity Index (CCI) is a basket of 17 major raw commodity futures prices rolled into one composite price index. It’s an excellent gauge of the overall trend in commodity futures prices, as well as commodity price inflation. See on the daily chart for the CCI that prices have backed off from the summertime high. At present, there is the specter of a big and bearish double-top reversal pattern forming in the CCI. If prices drop below the solid technical support level seen on the daily CCI chart, then the bearish double top would be more likely to be confirmed and odds would increase that the CCI would trend lower in the coming weeks. Right now, the CCI is in “no man’s land” between the key support and resistance levels on the chart. Stay tuned! Jim Wyckoff

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