Copper flattened out after a strong breakout over the prior couple of weeks. The run to resistance at $2.90-$2.925 has temporarily stalled with Friday's high reaching $2.898. Rising support is at $2.85-$2.825. Copper use to be a leading commodity indicator of equity returns but this is no longer the case. However if the U.S. returns to a true capital-expenditure driven economy like we had in 2005-2008, copper could continue to rise.
Utilities were the strongest sector last week with the Financial and Industrial sectors posting moderate gains. Oil and Energy led the laggards, falling 3%, followed by Business Services and Technology. Medical, Basic Materials, and Consumer Discretionary were also weak.
The Utilities Selector Sector Spider (XLU) pulled back on Friday after lower resistance at $54-$54.50 held during the prior session. This level held twice in June and the recent attempt is forming a triple-top. These technical setups can be bullish, or bearish, with XLU needing to close above resistance to form a new base and possible breakout towards $55-$56. Near-term support is at $53.50-$53 and a rising 50-day moving average.