Copper lagging after China growth data

 Copper bars

Copper is lower today after the China data showed growth in first quarter was lowest in almost three years. May Copper holding below the closing pivot pt of 3.72 keeps the overall theme negative, but the 3.63 area which is first major support held Wednesday and will key. A break in Copper would likely weigh on equities as SPX climbed back above its 50 day moving average which was very clean pivot pt but may lose some significance as media is pushing it. More important may be the NDM and QQQ which are holding below their initial closing pivots; see NDM chart.

Nasdaq chart

QQQ has 67.28 as closing pivot. SPY settled on its broken trend line yesterday and may prove negative with lower close below it today… For today, use 1375/78 as first key support in SPM and 2720.50/2725.00 in NDM. Treasuries are firm and look for USM to test its short term key at 141-15; 140-23 is pivot pt support. Five-year future again testing potential failure level at 123-15. Eurostoxx is holding below what is becoming a very pivotal resistance at 2291 today. FTSE spot index firmed from its 200 day avg and nearly hit its first key resistance of 5734 and lower today; negative below short term. CAC is holding below its 200 day average for fourth day.

Market Sentiment

CONTRACT / SECTOR

THEME POS / NEG

POSITION STAGE

TARGET / KEY PTS

STOCK INDICES US

Mixed/Neg

SPX 1357.50 s/t key

SPM 1375/78* s/t

US TREASURIES

Positive

USM 141-15* s/t

TYM 131-02 close

CRUDE WTI/BRENT

Mixed/Positive

WTI 102.46* key

Brent 120.74* pivot

METALS

Mixed/Neg

Gold 1690* 200 day

Copper 3.63**

CURRENCIES

EURUSD mixed

US$ 79.41 pivot

AUDUSD positive

GRAINS

Mixed

SN 14.09* pivot

May Corn 6.642*

 

About the Author

David Wienke runs Triquetra Resources Ltd. in Riverside, Ill. (www.triquetraresources.com).

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