With the breakdown in the dollar, and the powerful thrust in crude oil prices, and buoyancy in metals such as gold, silver, alumininum, copper, and the industrial metals, the pattern that is developing in the PowerShares DB Commodity Index ETF (DBC) is fairly conspicuous. Let's notice that Friday's low at 21.42 was followed by today's potent up-gap open and strong action -- the type of action expected at the end of a correction, and at the beginning of a meaningful rally effort.

The early September action is not unlike the mid-July action in the DBC, with one important exception: now the price structure pivoted off of the flattening 200-day moving average, whereas in July the recovering price action smacked right into a sharply declining 200-day moving average. The current pivot low and potential upmove has considerably less technical headwind than its predecessor, and along with a dollar "friendly" environment, represents a much more bullish technical setup than earlier this year.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.