Wednesday, February 16, 2011

Copper ETF (JJC) Line in the Sand at $59.64 (Leaf_West via Slope of Hope & Tim Knight)

How is Dr. Copper Feeling? (by Leaf_West via Slope of Hope & Tim Knight)

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 ...
Below is the daily chart from the Copper ETN (JJC) ...
JJC_Feb16, 2011_Daily
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!!!

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