We got the follow through we had been looking for on the S&P 500. This means that the broader market is just now starting to participate in the tech and commodities rally.
Even so, it is best to focus most of your attention on the high flying commodities here. Oil and metals stocks are just now breaking out of strong chart patterns like cup and handle, double bottom, and inverted head and shoulders.
We would categorize these patterns as longer term breakouts. Pennants and bull flags are short term patterns that project short term moves. Patterns like the cup and handle project multi month, and sometimes multi year moves higher.
We appear to be at the threshold of a major move in commodities.
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