Copper Continues to Weaken; Another Bad Market Omen

From the Financial Times:

Copper prices fell to their lowest level of 2011 on Monday as cautiousness over the inability of the eurozone to resolve its debt crisis and concerns about tighter monetary conditions in China hit sentiment on commodities markets.

Demand for the red metal is closely correlated to global economic growth as well as liquidity levels in China, which represents 40 per cent of total copper demand.

 Prices are below the 200 day EMA.  The 10 and 20 day EMA have moved through the 200 day EMA and the 50 is about to; all the shorter EMAs are moving lower.  The MACD is already negative and has given a sell signal.  Prices had found support at the 3.9 area but have now moved through that level, printing a strong downward bar.

Copper is a bell weather commodity; this does not bode well for the economy as a whole.