Recall my series of blog posts on industrial giant Caterpillar over the past few years, especially this recent one here. It has been a slow-developing process, but the stock continues to hold that critical low-$80’s level. Updating the monthly chart below, you can see Caterpillar is threatening to turn up and press off major support.
I am reticent to look for a fresh cyclical bear market until an industrial giant like Caterpillar breaks down through multi-year support.
_____________________________
Agreed. Looks like CAT might have put in a small bottom a few days ahead of the S&P back in Nov. There is also a fair amount of strength in FCX, despite the recent acquisition woes. Not surprising considering they are in basically the same business, but the news in this sector hasn’t exactly been bullish.