Tuesday, June 29, 2010

Copper

The trend in copper has correlated with the S&P quite well since the March 2009 lows. Although longer term charts show less of a correlation it will be interesting to see how copper does over the next few sessions. Perhaps it is making a A-B-C correction before breaking to lower prices--or perhaps the 38.2% retracement of the March 2009-April 2010 will be just that--a retracement of an ongoing bull market. If the SPX-CPR correlation is to continue, the next big move on copper may be similar to that of the equity markets.

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