The commodity research bureau index, a good leading indicator of future higher inflation has done the unthinkable. It has avoided a bearish divergence, and instead formed a bullish symmetrical triangle. A couple days it broke out of that symmetrical triangle in what I believe is an elliott 5th wave UP.
I am no elliottwave expert, but I do know from experience that if it is an elliott 5th wave up, it could be a very fast and persistent move up. I am simply amazed at the ability of the commodity research bureau index to show a consistent powerful uptrend. There was the potential where I have drawn the red arrow all the way at the top for the commodity index to break down in a bearish divergence. However it did not happen! That is what bull markets are made of. Yes, a bull market in commodities!
Note also that the RSI or relative strength index is in breakout mode after 2.5 year consolidation!
This is likely to be the most explosive leg up for this commodity trading index. Are you putting the puzzle pieces together? Inflation + Declining Long Bond + Higher Rates...