Copper, Oil and Cyclicals All Turning Lower Right on Cue

The impressive rallies of late in the industrial commodities could be nearing their end. Both copper and oil are bumping up against substantial resistance at their own 200-day moving averages that have acted to put a lid on previous rallies. Meanwhile, and not coincidentally, the relative underperformance of counter-cyclicals vs cyclicals since mid-February also appears to have ended (chart 3), with counter-cyclicals leading the market over the last week and a half.

Pic1

Pic2

Pic3