Copper

Today I wanted to conclude on the topic of "Dr. Copper". Copper is sometimes referred to as "Dr. Copper" because the metal is used in so many industrial applications and is essential for many different sectors of the economy. Due to this demand, price action is a good indicator of the state of the global economy. Over the past 5 years you can see there has been a direct correlation between copper and the general markets. The two charts are almost identical, but lately there has been a big divergence between the price of copper and the SP500. As for now, the correlation seems to be broken. Should it return, either copper will need to rise or the SP500 needs to fall. I believe it to be the latter.