Copper Pushing Resistance

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 Showing Strength

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.