Heard about the "fiscal cliff" lately? How many times have you heard it mentioned in the last few hours? Is the media coverage about the "fiscal cliff" causing investors to look or focus in the wrong direction for clues about the market's next significant move?
Copper has been a pretty accurate indicator to the overall direction of the S&P 500 for the past few years. Each time copper has hit support line (1) in the chart below, the S&P 500 has been at or near a key low as well.
Keep your eye on this support line in Copper. The odds are high that the message copper sends is a much better indicator about the future of the markets than the hype around the cliff.
Click to enlarge
Copper's message will provide useful input for portfolio construction - more so than the hype surrounding the "fiscal cliff."