S&P GSCI (COMMODITY INDEX)

S&P GSCI (Commodity Index) is in a clear downtrend. Well-defined downward sloping trend line acts as strong resistance at 655 levels. Over the past two years trend line acted as strong resistance and each counter trend reaction reversed from the strong trend resistance. It is now clear that a breakout above this technical level will reverse the medium/long-term downtrend. I continue to watch commodities with a negative technical outlook but also keep a close eye on this strong trend resistance in case we see a sharp reversal and a decisive breakout above 655 levels.