After a rollover Monday, Tuesday is starting will less optimism.
Charts like FCX had a huge volume day as Copper stalled. This was the highest volume day since the covid lows.
Here is the one year chart.
Here is the chart of copper. Big volume there too with a reversal bar.
Lumber also had a big reversal yesterday. Look at the zoom panel.
On the SSIH chart I put in the daily setups blog yesterday, the $NDX broke the one year uptrend. Lower panel.
The reversals in commodities look more sinister with the large volume on the reversals. Caution is advised.
Oil has a couple of mixed messages. One is the Colonial pipeline, which is not a major issue. Short term demand impairment in India is also a current concern. We get IPA data tonight and EIA data tomorrow regarding crude oil, gasoline and heating oil inventories. Not sure if it will hold up in a downdraft in the equities. Clean tech is still an area to avoid.
Caution is my playbook here.
Greg Schnell, CMT, MFTA