Copper as a Leading Indicator/A Resumption of the Market Rally

ETF JJC essentially tracks copper futures. Copper, of course, is a key economic indicator given how essential it is in myriad industrial processes.

Since the market rally began in March the chart of JJC looks strikingly like that of the NASDAQ, which has been the leading major market index.

This morning JJC is gapping to fresh July highs, a move that could well take out the June highs which would represent a 52 week high.

The NASDAQ is gapping up as well but not as aggressively, remaining below its July highs for now.

You might consider JJC as a leading indicator for the NASDAQ, signaling a fresh uptrend phase to the market rally that appears to have begun on Monday.

Today's bullish market action is confirmed by first hour trading volume, which is the highest in nearly a month.

As for our previous post regarding a correcting market, it appears SYNA is more of an isolated event than a portent of the market. The stock continues to swoon on competitive concerns. We cited it as a proxy for several stocks that were failing to hold key support after important advances, which often presages a further market breakdown. The error here was in focusing on a narrow sampling. Today's moves in copper and the stock market are clearly broader and more trustworthy.