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Heard about the “Fiscal Cliff” lately? How many times have you heard it mentioned in the last few hours? Is the media coverage about the “Fiscal Cliff” causing investors to look or focus in the wrong direction for clues to the market’s next significiant move?
Copper has been a pretty accurate indicator to the overall direction of the S&P 500 for the past few years! Each time Copper has hit support line (1) in the chart above, the 500 has been at or near a key low as well.
Keep your eye on this support line in Copper, as the odds are high that the message Copper sends is much better indicator about the future of the markets, than the hype around the cliff!
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support yes, but one could argue a large, multi-year unconfirmed H&S in the making and not turn a blind eye to the possibilities that it could also be flashing a warning.
Yeah but is it a leadeing indicator? You could reverse the observation above and say each time the S&P has been near it’s long term support level, so has copper. Nonetheless if Copper breaks that support level before the S&P breaks down, I’m not going to ignore