Overheard Copper telling SPY “Not So Fast”

Many look to Copper (ticker: $JJC) as a tell on the direction of the stock market and in particular the S&P 500 (ticker: $SPY). Well if you are one that follows this relationship then you probably heard Copper tell SPY that a move higher is not in the cards. Below is the intraday 5 minute chart for $JJC showing a big gap down today. But the $SPY is not listening moving higher out of its Diamond

consolidation pattern, telling Copper that it is wrong. Is one day divergence important? Look at the
ratio chart of the $SPY against the $JJC. There is a pretty tight fit over the last year. But beginning

in April a long divergence appeared. It has since closed but tells us two things. First a one day divergence is not the end of the world. But more importantly perhaps the relationship between Copper and SPY is changing again as it does over time.

As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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