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In the sporting world the popular news story of the weekend was the March Madness brackets. In the business world the news story of the weekend came from the small island of Cyprus. Should we be concerned about the Cyprus story or is it simple Madness to be concerned about this small island and its impact on global growth?
The action of the banks in Cyprus may not be good for depositors, nor do I feel this is sending a good message.
When it comes to the Power of the Pattern and price messages that matter, the message from Copper and Crude Oil in the near future I believe is the real story to pay attention to! The weakness in Copper of late has it breaking some support lines, and Crude Oil has formed a multi-year flag pattern that should end soon.
Should Copper and Crude break down further, they would be sending a message that the global economy is slowing down, and we should bear in mind that the correlation between the S&P 500 and Copper/Crude is an important one!
Pay attention to Cyprus? Sure. But the bigger story is the price action in Copper and Crude Oil over the next few weeks and what they could be telling us about the global economy.
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