This week I want to look at the copper chart. As I mentioned before, copper has a strong correlation with the overall stock market.
Right now, the copper market is in an up/down/up sell off, making a series of lower lows and higher highs. Prices have sold-off in three, well-disciplined channels. This is encouraging as it tells us that traders are not running for the hills, but slowing getting out of positions. While the shorter term trend (the 10 and 20 day EMA) is up, the shorter EMAs are below the longer EMA. Additionally, the longer-term trend is down and prices are using the EMAs as resistance rather than support. However, the MACD is moving higher.
Right now, Dr. Copper is signaling further weakness.
