Get Ready for Some Back Slapping on CSPAN, and the White House Lawn

The Federal Reserve has continued to state that long term inflation pressures and expectations are under control and that what we are seeing at the supermarket and the pumps is a short lived phenomenon. Well if they are right then this week maybe the beginning of that inflation bubble bursting. Below is the chart for the CRB Index. It is an un-weighted geometric average containing 17 commodities. The index covers energy, grains, industrials, livestock, precious metals, and agricultures. A broad measure of inflation. The 50 day Simple Moving Average (SMA) has been support for any pullback since the run up after completing a W-V pattern in September. It is right there again. Keep an eye on this, for a firm break below the 50 day SMA will invariably bring out Ben and friends to observe that they are right. I will be convinced on a break below 340.

As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

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