Listen to Dr. Copper who usually knows better...

Who hasn't read these old proverbs like ....

" the stock market has a roof of copper"

" listen to Dr. Copper"

, but there is something to the predictive powers of Dr. Copper given the Copper is a base metal that any emerging and developing country needs to build infrastructure, to construct houses etc.

Copper is a key indicator of the health of growth in the emerging markets that as you might recall are the countries that are now supposed to de-couple and save the global economy by out-consuming the strapped for cash US & European consumers. Dr. Copper on the other side seems to disagree as you can see in the chart. Momentum, Relative Strength, failure to break out all seems to hint at some kind of correction.

The next couple of month will show whether we just see ...

1) a shallow quickie

2) a sell in May ...and return in October

3) a deeper dive into next year ...or

4) more!!

The angle of descend will tell the story which scenario will materialize or in other words the degree at which things develop in terms of depth and pace downwards will determine the trajectory and therefore the case.

Unfortunately we will not do our weekly update this weekend (I simply don't have he time), but nothing has really changed since last week. We bounced of the 61.8% Fibonacci Resistance, Exhaustions continued to accumulate, Sentiment Extremes are plentiful (or do you hear anyone talking about a "W" -Macro Scenario anymore) and the market seemed to have stopped defying gravity.

There are also plenty of Head and Shoulder Patterns (see chart) that could see a break of the neckline. (Fib Time Cluster)

As I said last week we now need to see follow throughs and broken necks (-lines).