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Copper ETF (JJC) signaled softness was ahead back in 2008, as it broke down from a series of highs along line (1). Railroads lagged, yet confirmed broad market weakness was going to take place. Turning the page forward 3 years, Copper (JJC) created a series of lower highs along line (2). Rails lagged Copper again, then played a gain of catch-up to the downside.
JJC this morning finds itself on a very small shelf of support. A breakdown in JJC would be suggesting further softness in the Rails, BROAD MARKET, FCX and Silver (SLV). As usual, keep a close eye on the price action of Copper/JJC for bigger macro messages.
Two weeks ago the “Power of the Pattern” was suggesting that FCX and IYM were hitting a key hurdle of resistance (see hurdle post here) At that time FCX was trading at $46.73 per share, this morning it is in the $41 range. The pattern at hand was suggesting the counter trend should be about to end. I remain of the belief that FCX, JJC and IYM are worth watching for Macro/Bigger picture messages.