CLICK ON CHART TO ENLARGE
In 2008 and 2011, when Copper broke below rising support, the 500 index soon followed.
At this time Copper finds itself nearing the end of a flag/pennant pattern at (2) in the above chart. Odds are pretty high that a breakdown in Copper would “Drag” the 500 index to lower prices!
Copper futures have been pretty boring of late, which is typical towards the end of a flag pattern. Including todays decline, the S&P is down around 5% from its March highs, not too large of a decline. Keep a very close eye on what Copper does in the upcoming weeks, due to this key flag pattern.
And what about the Baltic dry,rail freight,port traffic,iron ore,etc?
jclbiz