David Fuller's view Gasoline (NYME) (weekly & daily) encountered resistance near its 2007-2008 peaks following an overstretched advance and broke its short-term uptrend yesterday. It bounced from the psychological $3.00 level today but upside scope appears limited to some top extension prior to an additional mean reversion reaction towards the rising 200-day moving average. A sustained break above $3.50 would be required to negate this outlook for a further correction in coming weeks.

Crude oil (WTI) (weekly & daily) has seen its advance checked by a dramatic weekly key reversal. This has halted its advance for at least the short term. Sideways to somewhat lower ranging now appears likely in a further period of mean reversion towards the MA and extensive underlying trading.

Copper (weekly & daily) has rolled over in recent months and is now pressuring lateral support from the psychological $4 level and also the rising MA. These are important levels and an upward dynamic is now required to check the downward drift and also to reaffirm support in this region.

Silver (weekly & daily) plunged this week following its accelerated peak in late April. Consequently the sell-off actually looks somewhat overextended, having approached its first region of potential support from the trading ranged formed between approximately $31 and $25 between early November 2010 and late February 2011. However, it will take time to rebuild support and also confidence in silver following the biggest slump since 1980. Consequently, a period of ranging is now likely in an additional phase of mean reversion towards the MA. We may not have evidence of a sustainable low and a return to demand dominance until silver produces a sequence of post-slump higher reaction lows. Again, this will take time and silver is unlikely to be the leader in the next phase of seasonal strength for precious metals.

Gold (weekly & daily) has all but formed a weekly key reversal and mean reversion towards the MA has been the norm following similar overextensions. Consequently, it is very likely that the window of seasonal outperformance has closed, perhaps until September if the 10-year pattern of strength, averaging particularly good gains in 4Q of odd numbered years and 1Q of the following year is maintained. While there does not appear to be any fundamental logic to this sequence, I would give it the benefit of the doubt, until proved otherwise. Meanwhile, gold is likely to range sideways to somewhat lower within both its medium-term uptrend and also the long-term secular advance.

Corn (weekly & daily) encountered resistance near its 2008 peak and has failed to maintain its break above the February and March highs. Consequently, the overall pattern now shows a loss of upside momentum and some further mean reversion towards the rising MA appears likely. A clear upward dynamic would be required to question this outlook.

DJ World Stock Index (weekly & daily) has seen a small weekly key reversal suggesting that the global rally since March has given way to a reaction phase and mean reversion towards the medium-term uptrend approximated by the rising 200-day MA.

For a discussion of these developments, in a fundamental and behavioural context, please listen to the Audio.