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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?
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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