Commodity prices across the board -- including crude oil and grains -- have collapsed overnight, as symbolized by this hourly chart for soybeans (above) and this 2-hour chart for crude oil (below). Is this the beginning of a downtrend in commodities? I don't know. I'm certainly not ready to declare a bear market in commodities. However, this certainly appears to be a significant possible shift in the markets. If commodities begin a downtrend, and especially if the price of crude oil drops by $30-$40 per barrel, then it is likely we will also see a very forceful recovery in stocks, and an economic recovery into the fall. This may be a key pivot point in the financial markets.
