We've been highlighting the weakness in the "metal with a PhD in economics" all year so it should come as no surprise that we're keen watchers of copper prices. The reason we pay such close attention to copper prices is that copper in an input in so many construction and manufacturing activities, which then means changes in copper prices offer a clue as to the state of the global economy.
With that being said, copper now finds itself at a fairly critical technical level. Should copper prices fall through support at about $2.98/lbs it would not only mark a 4.5 year low, but would also open the door to much lower prices.
As an aside, we should not be surprised in the weakness of copper prices given the continued slow down in Chinese industrial output, which is by most accounts headed still lower from here.