This action in Copper prices is starting to spook me a little. 

As you may or may not know, we've been using Copper as a leading indicator to stock prices, and for just reasons. Copper bottomed well ahead of the March lows, and signaled through every little pullback in the last year that the trend would continue. Take a closer look at where that relationship stands as of now.

As of late, Copper prices have taken roughly a 15% haircut, and look heavy as hell. This has also dealt a heavy blow to stocks like Freeport McMoran and Southern Copper, which are both down between 22-25%.

I speak of this only as a market barometer, which is also a good indicator of the global growth story. As you can see, right now that story is hurting.

Equities have been trading well the last few days, but there has been a reluctance to break the 1105 level in the S&P. The McClellan has been able to reset from its extreme oversold levels, but I haven't bought any calls or any stock in over two days. Nothing looks good.

If this level holds, I am going to continue to add bearish positions, looking for more downside in equities.

That is, of course, unless the market can find some leadership. Sustainable leadership. Also, I need to see Copper stabilize. Otherwise, I am just sitting here, waiting.

I just finished giving an hour and a half presentation tonight on the topic of Market Breadth Signals for Swing Trading. The chart of the night definitely goes to the S&P and McClellan Summation Index comparison, which has nailed every major turning point through the beautiful divergent signals it provides. Another reason to be careful here.