The Power of the Pattern reflected that Copper was about to break from its flag pattern and a breakdown should pull the 500 index down with it on 5/14 (see post here)
The chart below reflects that Copper is pushing lower out of its flag pattern and now Crude Oil looks to be joining Copper with another flag pattern breakdown.
CLICK ON CHART TO ENLARGE
The above chart reflects that both Copper and Crude Oil broke below rising support lines within a few weeks of each other, back in the summer of 2008. What happened to the global economy when both of these broke support? I doubt that I need to share what took place in 2008 and 2009.
Now Copper and Crude Oil are both breaking below multi-year flag patterns within a few weeks of each other in the 2-pack above.
When I think back on 2008/09 I think of the movie “Great Escape” starring Steve McQueen. 2008/09 was a time period where investors just wanted to escape/sell most everything that they had, few investors escaped falling in price. A year ago the conditions were set for another period where few places could be found to hide (see Great Escape post)
Copper and Crude oil are are NOT the holy grail when it comes to indicators, yet they are global products and they have an above average track record that when they break down, they often pull other products down with them.