After moving relentlessly upward since the March bottom, the markets finally took a break. The S&P 500 (with a tech heavy presence), the Nasdaq 100 and the Russell 2000 corrected sharply over the last week or so. To end the week, the market was mixed. The Dow Jones Industrials finished the session up 131 pts (+.48%). The S&P 500 ended 1.78pts higher (+.05). However, the Nasdaq 100 declined nearly 67 pts (-.60%) on the heals of further declines in Microsoft, and Apple. The small cap benchmark Russell 2000 also declined .70% to 1497. Its underperformance relative to the S&P 500 has been remarkable. As most broadbased indexes have gone on to make all time highs, the Russell 2000 is still a few percentage points below its record high. Much of the weakness in the markets was focused on Technology and Energy sectors.
Gold and Silver remain in consolidation phase with gold trading between 1925 and 1975. Silver seems stuck around the 26.5 to 27.5 area. The bright spot in the metals appears to be copper which has rallied from the $2.100 area to 3.043 and is close to making highs not seen since before the pandemic.
Dr. Copper as its sometimes referred to is a key barometer in global economic growth since copper is used in housing, manufacturing, wire and a host of other Items. The rally in copper could indicate that the global economy continues to reopen and recover. Too, China is a large user of copper and their economy seems to be getting back on track faster than some other economies. See copper chart below (source: CME Group trading simulator)