The week closed out with a bang as commodities are under a strong technical reversal. Although, I have to say commodities don't look as bad as the stock markets. Gold held up fairly well, while crude oil is heading south. The dollar is gaining support and traded high by the end of the week. The gain in the dollar was not massive, but it did stop going down and that puts pressure on commodities.
I do think the markets have put in at least a short-term top, especially the stock market. I wouldn't want to be holding a short-term long position going into Monday. There were decent reversals in commodities, but the reversal in the S&P 500 was vicious. The market broke a major trendline on Wednesday. Then it retraced to the breakout on Thursday and then took out the lows on Friday. This looks very negative going into next week. A formation like this normally takes several weeks to complete, but it happened in three days!
As money comes out of stocks, it will also follow with many commodities. The odds highly favor a strong sell off next week. If the markets move sharply lower, expect to hear a lot talk about the financial problems that were swept under the rug over the last six months. It will be interesting to see if gold can hold above $1,000 or mount a rally if the stock market faces another sharp sell-off.