Prices for Copper and Other Metals Hit with Sucker Punch

A “sucker punch” is defined as a punch made without warning, or while the recipient is distracted, allowing no time for preparation, or defense on the part of the recipient. That’s what we got last week – A sucker punch.

Just about every market, including base metals, energy and equities all felt the severe pain of the blow, with copper particularly hard hit, as it fell almost 10¢ between Thursday’s after market (Aug. 1)  and Friday’s close (Aug. 2). The weekly Copper Spot price fell through a key support line, putting it dangerously close to testing a structurally important foundation of the market. And the Copper Price & Inventory Chart available to subscribers to The Copper Journal has the spot price falling to a two-year low on a closed basis, with $2.50 being the next line of support.

With the exception of nickel, the rest of the base metals group is also on track to testing their respective support lines. The energy complex saw crude oil fall $4.63, or 8% on Thursday, with heating oil and gasoline both off more than 10¢ per gallon.

As for equities, with the exception of minor gains in India and Brazil, every other major market fell on the week. On July 26th, the S&P 500 closed at a record high 3,025.86. From that point, the S&P has given up 93.81 points, or 3.1% to close at 2,932.05 on Friday, and it now sits precariously on a support line.