Much to the bears’ frustration, major U.S. equity indexes are refusing to make way for profit taking pressures even as earnings season continues full steam ahead. The S&P 500 Index continues to inch further into uncharted territory, although over the past two weeks it has failed to continue its impressive streak of posting new highs, leading many to speculate about what headwinds could spark the next steep correction on Wall Street [for more commodity futures news and analysis subscribe to our free newsletter].
While the bulls reigned supreme on Wall Street in 2013, bearish pressures kept a lid on commodity prices throughout the entire year as investor rotated out of safe havens and jumped into cyclical equities. Despite the improving economic outlook on the home front, as evidenced by the Federal Reserve’s efforts to start reducing stimulus, demand for natural resources remains lackluster. Worries over China’s slowdown and unfavorable supply conditions remain the key headwinds that will most likely continue to put downward pressures on commodity prices heading into the new year [for more commodity news and analysis subscribe to our free newsletter].