The market has retraced 62% of last week's slide on lighter volume. As depicted on the the 5 min. chart of e-mini futures below. Last Friday's jobs report gave us a wide gap, but formed a bearish rising wedge which eventually led to a complete gap fill. Monday's action was inside, and today we were finally able to extend beyond Friday's high.

The CRB commoities index DBC chart above, fell 17 pts. (the most in 2 years) almost 7% on huge volume today. No commodity escaped the selling. Gold lost $40 (3%) while silver lost another 10%. Crude oil fell $12 (10%). Copper lost 4%. Part of the reason for the heavy commodity selling was a sharp rebound in the U.S. Dollar. Look at a chart of UUP and you'll see a huge move up on massive volume.

The stock market opened the day lower and toiled around negative territory in the early part of the trading session, but bounced hard during mid-day to finish in positive territory.
As a result, gold (GLD, gold miners (GDX), oil (USO) and natural gas (UNG) pushed into a short-term extreme.
Natural Gas is the one to watch here. [...]

As we all know gasoline and oil prices have been on the rise lately. USO which is the ETF for crude oil has somewhat lagged crude oil prices but managed to make a 2 year high breaking out of a lengthy consolidation pattern. Usually  the breaking of such a long consolidation pattern gives way to a large move.   Looks like oil prices are entering a new price range which unfortunately means we can

I just wanted to post the numbers for the indicator tonight. One quick note -  USO and GLD have RSI (2) readings that have reached historical extremes.
Also, another successful trade today in the High-Probability, Mean-Reversion strategy. The strategy is up 23.7% since it was initiated in November 2010. Check it out here. Remember, patience pays. [...]