One of the world’s premier miners of Dr. Copper, Freeport McMoRan, has been a very good broad market “tell” since 2008. Rather than following it tick-for-tick, though, I find it useful to monitor the broad technical picture, to see if there are any divergences to equities as a whole.
Currently, Freeport is testing its weekly chart support trendline. The overall pattern of higher highs and higher lows since the October 2011 bottom in equities remains intact, though. Given the steep run higher Freeport saw in January, completely confirming the broad stock market move, it did have some room to come in, and it has done just that.
I am looking for this area to act as a study support zone now. If the bulls cannot defend it, only then will I look at this as some sort of bearish divergence. In other words, I expect next week to be a big test.