Copper U.S. High Grade Futures (222.60)

Copper has not corrected in any meaningful way since February 1st 2006, when I called for a resource selloff. This is a testament to the strength of the underlying trend. At this point I will be pleased if we pause below the 230 area (the recent high) for weeks or months from here.

On the short term, we are moving into oversold territory, and I suspect that we could see a snap-back rally in March.