It looks to me like the commodity markets have more downside action ahead according to the CCI weekly chart. Since it's Sept 2012 high, this market has been making lower highs and lower lows. This 6 month downtrend has seen 3 ABCD patterns:
* Pattern 1 has a shallow retracement with 4:4 neutral skewing: BEARISH
* Pattern 2 has a deep retracement with 4:3 right handed skewing: BULLISH
* Pattern 3 has a neutral retracement with a 1:3 left handed skewing: NEUTRAL
The dominant pattern is #1 and sets the tone, which is Bearish. I'm expecting this move to test the 78% retracement zone @ 522.903 and possibly a bit lower. I think this downtrend finds support somewhere between 502.50 and 523 as the downtrend has been weakening. If we get closer to this area I will give more analysis on possible areas for a bounce, which would affect numerous commodity markets.
Stay tuned!
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