As in ‘do or die’ support…

If commodities were on a bull instead grappling around for support the Fed would be in a box if they were to seek to promote inflationary policy against the prospect of moon-launching commodities.

Instead, the CCI equally weighted commodity index has looked like crap since the QE3 announcement.  This either implies undeniable deflation is at work or a pause before a next leg up that would erupt soon.

Here’s a chart showing the support we’ve been watching in the newsletter for many weeks now.  If CCI were to break below 560, the bearishness that I think is on tap for next year would be indicated NOW.  Best to keep cash and put risk management first.  But as it stands, CCI is above support.  That’s a fact.