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Divergence between Commodity Markets & China

Written by Dax. Posted in Articles

Up until the last several months, there has been a strong correlation between the commodity markets and China. Since June one can see the divergence that is now in place.  Much of the recent rise in commodities is due to the drought conditions we are having across in the US and because of that, grains have taken off to the upside.  If the $SSEC breaks its shorter term downtrend,  we could see the correlation return and the commodity markets could breakout above their major downtrend.  Something to watch going forward.