I have blogged in the past about how useful Copper is as an indicator of global economic health … it will often give us good signals in front of equity market pivot points/swing areas.
Read some of those blogs here …
FCX/Copper … What is the Right Message?
Below is the daily chart from the Copper ETN (JJC) …
The chart is telling us an interesting story right now …. as discussed in a blog identified above, Copper hit its 61.8% Fibonnaci target for Wave 5 when it moved into the $61.60ish area.
Well since I wrote that article, Copper made a retest of that high and "failed" … price moved back to the 20EMA ($59.68) which is also right at the Wave 3 top of $59.6399 made on January 3, 2011.
I have called this level the "line in the sand" … if price breaks this level and stays under it on a closing basis for a couple of days, I would use that as your WARNING that equity markets are going to top here soon.
Keep you eyes on Dr. Copper!!!
