Whether or not the big drop from last Thursday can be negated with this rally is at the heart of whether or not the stock market is headed higher or lower in the short term. Watch for a closing S&P 500 price above 1,874.40. If it closes above, the markets will likely test the all-time highs on the S&P 500 and very possibly move higher. If the markets cannot close above the highs by tomorrow, look for a flush and Thursday's lows to be wiped out quickly.
Copper is an important long term indicator but short term means nothing. The recent collapse after extremely poor Chinese economic news confirms the lack of demand for the building materials metal. Down the line this spells huge trouble for the global economy and should be taken as a warning signal. There is a limited amount of time prior to the copper signal coming into play.
Facebook (NASDAQ:FB) continues to look weak. The hype is fast fading and the charts show significant downside in the coming months. Look for a test of the $59.00 and then $53.50 level.
Chief Market Strategist