COPPER Weekly Chart Sideways Symmetrical Triangle

Copper continues to play out sideways, we have been watching this chart the last few months.  The price action is at the centerline now at 3.5-ish moving into the apex where a decision will have to be made.  The timing perfectly coincides with the Chairman Bernanke drama that will paly out today, tomorrow, and at Jackson Hole next month.  If hte Fed is going to act, there will be some hint in Bernanke's language or statements over the next month or so.  This is why copper trails sideways.  If the Fed plans on quantitative easing and printing more money, copper, commodities and equities markets will catapult higher. Futures are buoyant this morning based on Bernanke releasing happy QE news today.

The 20-week MA remaining under the 50-week MA, even after it attempted to recover over the last three months, gives the market bears the upper hand.  Also, note that the RSI and stochastics remain under the 50% levels, and the MACD is under the zero line, all three favoring the bears at this juncture.  Simply put, the fate of hte markets is in Bernanke's hands over the next six weeks, and today kicks it off with his testimony in front of the Senate Banking Committee.  With Fed stimulus, copper explodes higher up and out of the triangle and the SPX is on its way above 1400. Without Fed stimulus, the deflationary pressures continue, copper will collapse out the bottom of the triangle and the SPX will move under 1300 back to the starting year number at 1258. Use the inside blue lines as an early indication of the coming move. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.