DBC peaked in 2007 and has created a series of lower highs ever since. The rally over the past couple of years has DBC testing falling resistance that started 11-years ago.
While commodities are testing long-term resistance, the same can be said about interest rates too!
The yield on the 2 & 5-year notes is testing long-term falling resistance as well at each (1). The last two times that yields touched these long-term falling resistance lines was back in 2000 & 2007.
What commodities and yields do at each (1), will send monster important macro messages to Commodities and Bonds friends. These are price tests seldom seen in the past 10 to 30-years! What bonds and commodities do with these resistance lines, will become very important to stocks!!!
The Invesco DB Com Indx Trckng FundETF (DBC) closed at $17.89 on Friday, up $0.14 (+0.79%). Year-to-date, DBC has gained 7.71%, versus a 3.82% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.