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In the TV series Lost in Space a famous phrase from the robot was…”Danger Will Robinson.” When it comes to ole Doc Copper, a dangerous pattern took place last week! A few weeks ago Copper broke below support line (1) which has been in place for the past three years.
Early last week, Copper rallied for a few days, nearing line (1), which is resistance and stopped on a dime and then proceed to decline on the week, creating a “large bearish wick just below this new resistance line!” This is a Dangerous pattern for Copper, suggesting a good deal of selling could be in its near future.
So is Copper the only global economic indicator breaking support?
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MS Commodity Index (CRX) breaks support the past two weeks and creates a large bearish wick last week! Investors should respect the message of this “Weekly” pattern…which suggests increased selling pressure in the commodities complex and a slowing global economy and could spill into the S&P500/Risk assets !
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