Copper vs. S&P 500 - Topping?

As the chart above shows, copper and the S&P 500 has been in a tight correlation since mid-March 2009. Copper turned before the S&P 500 did, as copper turned in late December 2008, while S&P 500 turned in early March 2009, therefore I will be looking for copper to top-out before the S&P 500 does.

The latest action in the copper could point towards a possible top being in place in mid-February 2011. If this is the case we should soon see copper break below all important support at 421.25 (light green line) A break below that level will confirm the top for a decline towards at least the 362 - 366 area (15% decline).

A break below 421.25 in copper will most likely mean that a top is in or very close in the S&P 500 too. A break below 1,294.53 would be the first confirmation of a top, while a break below 1,255.22 would confirm a decline towards at least 1,178.