| From Moneyandmarkets.com: We have seen commodities across the board tumble in the past few months. So is the commodity supply/demand squeeze over? In fact, the pullback we've seen in major commodities may be enough to give stock investors heartburn, but it is pretty typical for consolidation in a commodity bull market.
For example, the CRB — a widely followed index of commodities that is weighted toward energy — is at price support now. It could bounce here, or it could keep pulling back to further support at 366. It may look like a cliff dive, but these kinds of retracements are normal and even necessary. Meanwhile, the market is starting to react positively to good news. That sounds obvious, but for a while there, commodities were selling off even on bullish news — a sure sign that we were in a correction phase..... Full Article: Source
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