The price of Copper can be a leading indicator for global economic growth:
After hitting a high of $4.70 in February of 2011, it had been trending lower until it hit a low of $2.42 in January of this year, the lowest level since 2009.
Since January the trend has been to higher prices, closing at $2.92 on Friday.
There have been other consolidations during the 4 year down-trend, however it is important to keep an eye on the $3.00 level (which is close) and a move above this price would signal a break-out to the upside which may have implications for the global economy.
Q1 S&P 500 Earnings:
Forward S&P 500 Earnings Expectations:
Scott Tomenson,CIM Managing Partner, Chief Investment Strategist