Stocks higher, commodities continue down

The stock indexes closed with a healthy gain into the upper end of the recent trading range. The trend indicators are just now coming together, that is, possibly turning back up from the downtrend that has been in effect since early June. Momentum on the daily and weekly charts have turned up from oversold areas. With the way the indexes have been flipping back and forth every few days it is difficult to trust the indicators. The markets flipped right back up again on a Tuesday turn-around after three down closes, and right up to the top of the channel. The indicators suggest more upside, but this market is so erratic it wouldn’t be a surprise if this potential rally is short lived. Volume picked up a bit, but still well below that of the previous downmove. But then again it is August. The advance/decline ratio still looks awful. Commodities continue lower, with corn reaching levels not seen since March, and crude since early May.