MONTHLY CHART:

Following a brief push through the 284.61 Jan-07 low the market has struggled.

In fact the sell-off in Jan produced a negative Key Reversal Month, its impact perhaps aided by the fact that the trading month was made up of four complete weeks.

WEEKLY CHART:

On the Weekly chart note how the recovery from 2009 low failed ahead of the 38.2% retracement level.

There was a well-defined uptrend line which has been clearly broken, implying a deeper pullback phase has got underway.

DAILY CHART - MAR-10:

After the earlier drop below the 280.00 area the bear argument strengthened following the break of the s/term bull channel base projection, and then 271.66 23.6% pullback (of whole 2009 recovery).

This was our cue to adopt a bear stance in the Commodity Specialist Guide, supported by that key reversal month, above.

Any bounce should prove short-lived, ahead of a further downleg, possible resistance around 280.00.

Look out for s/term support centring on 260 (larger channel base projection just above, 38.2% just below). But the Index should push lower in due course.