On Friday I wrote a post mentioning how I would welcome several days of boring, sideways action in order to better set up a multitude of charts that remain loose and sloppy. With copper and Freeport McMoRan tanking this morning, outpacing even the broad market sell-off to the downside, the sideways scenario is obviously not in the cards to start the week.
The bulls are looking for the now-rising 20 day moving average on the S&P 500 to act as support, currently inclining from 1183. Moreover, they can also point to some large cap tech and retail/consumer discretionary names like AAPL CMG DECK LULU as doing an excellent job of significantly outperforming the broad market thus far today.
To my eye, the big story is copper here. The issue is whether copper is finally rolling over after showing relative strength at various points throughout the summer, or alternatively if it is leading equities on a fresh leg lower. I have often used copper as a leading indicator for equities over the past few years, but these past few months has forced me to reevaluate that thesis. Either way, the overall action is nasty and not consistent with a boring, sideways market digesting last week’s gains in a benign manner. Whether this is a one-day phenomenon or the beginning of a big move lower may very well be conveyed by how we close today.
“Shaking out hands”, so it seems.
In other commodity news similar to copper, a good friend sent my a photo shot of the front page of his local newspaper detailing how many new storefronts have opened to buy USED GOLD.
Seems like a top if you ask me.
Relax, resting.
yep … looking for another 1170 then another pop to 1240 AND MORE … Maybe THE CLAM will instigate the reversal on Wed after all.
s/b “another 25 pts down to 1170”
Your sentiment belies your avatar, TH.
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Not really …. short term bull, Medium/Long term bear … just playing the C wave rally then putting my claws on.