Copper about to “Drag” the 500 index to lower prices?


In 2008 and 2011, when Copper broke below rising support, the 500 index soon followed. 

At this time Copper finds itself nearing the end of a flag/pennant pattern at (2) in the above chart.  Odds are pretty high that a breakdown in Copper would “Drag” the 500 index to lower prices! 

Copper futures have been pretty boring of late, which is typical towards the end of a flag pattern.  Including todays decline, the S&P is down around 5% from its March highs, not too large of a decline.  Keep a very close eye on what Copper does in the upcoming weeks, due to this key flag pattern.

One Comments

  1. And what about the Baltic dry,rail freight,port traffic,iron ore,etc?