These important metals charts are all below the early Jan. highs. Today's break down in JJC would seem to indicate the global economy is not doing very well. Here is the basic materials ETF IYM.
IYM has a potential head and shoulder top pattern forming. Judging from the metals charts above I think the odds of a break down in IYM are pretty good. Lets take a look at the BRIC ETF EEB while we are at it.
The BRIC markets seem to be leading the metals lower. EEB has already broken below its 50 SMA. There has been a lot of optimism on the U.S. and global economy in the media this year. However, there seems to be no confirmation of that so far. The European economic data has been terrible and the industrial metals charts to be heading lower. The question is if/when will it matter to the U.S. stock market.
Bob
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