Copper Reversal

Copper reversed at an important resistance level. The gold/copper ratio has pulled back since July's highs, mainly a copper-driven move, and coming up on a base of support. A turn higher led by gold will signal stagflation and a turn higher driven by losses in copper will signal deflation. A continued drop in the ratio signals economic growth may remain strong despite the inflation.

As for the S&P 500 Index, the next level up is clearly 4100. Nothing particularly bearish will happen until 3930 falls on the downside.