Chart of the Day - Friday, February 7th, 2020

Today’s Chart of the Day was shared on Twitter by @J4_fibo. It’s a chart of Lumber futures over the past couple of years. Lumber closed at a new 52-week high today. As you can see from the chart, price is in the process of breaking through resistance from the 2019 highs. Commodities like Lumber and Copper are often thought of as being leading economic indicators, as they reflect a demand for global growth and development. There’s been a lot of focus on the weakness in Copper over the past month. However, it’s interesting to see that Lumber its breaking out and telling a much different story. Lumber and equities tend to be positively correlated with one another. Therefore, continued strength from Lumber would certainly not be a bearish development for stock market bulls.