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Ole Doc Copper has a decent track record when it comes to reflecting global stregth or weakness. Once Copper broke a multi-year support line back in 2008, Copper fell hard and the global economy became very soft.
Over the past three years, Copper has created a pattern that isn’t identical, yet it does look a good deal like the 2008 pattern. The breaks of the 2008 and 2012 support lines are taking place at almost the same price!
The decline of late in commodities and the broad market has been sizeable and in the short-term might be a bit oversold.
The important issue with these patterns is this- These patterns very much look alike and the key message in this repeating pattern is….will the economy act the same in 2012 as it did in 2008?