Commodities, Stocks Set for Bounce

NEW YORK (TheStreet) -- Commodities and stocks look ready for a rally or at least a relief bounce. The market is down more than 5%, and the normal pullback this year has been 4%. Using technical analysis and intermarket analysis we can see that the market is reaching extreme lows. This usually means we are only a couple of days away from a rally.

I work with several market technicians who analyze the market in different ways. We share our work in order to gain maximum insight on broad-market moves. We analyze momentum cycles, magnetic cycles, volatility levels, support & resistance levels and volume.

Each of us has found a formula that works for our individual style of trading. And by combining our work we have found that we can collectively produce some very exciting trading signals for the broad market. We use leveraged index funds to take advantage of our insights. While nothing in trading is ever perfect, our analysis for timing the broad market is very exciting.

Here are some quick charts on where the market is trading.

Dollar Index

This daily chart is a no-brainer. The trend is down and trading at resistance. If the greenback reverses back down we will see stocks and commodities move higher.

Dollar Index Daily Chart

Volatility Index

Again, the overall trend is down and trading at resistance. As the saying goes, "When the VIX is high, it's time to buy." Just to be clear, the VIX is low compared to the previous highs set back in 2008 which was around the 80 level. But, if we want to keep things simple for the current trend, then the VIX is high for our current market condition. The VIX moves in the opposite direction of equities.

Volatility Index (VIX)