This Is What a Real Breakout Looks Like

Big in BCOM

The Bloomberg Commodity Index continues its textbook breakout. We flagged mid-December as a second chance to get in, writing: “We are down to big supports, trading right around the 50-day. Second chance?” Fast forward to today and the BCOM index is up nearly 10%. Price has pushed decisively above the 50-day, but that’s exactly what strong momentum looks like. Note the 200-day is now sloping positively.