Gold has rallied strongly over the last 24 hours, finding confidence from the psychological $900/oz level and our 1st tier uptrend line. The precious metal has climbed above our 2nd tier uptrend line, and is heading towards what we view as a formidable foe to the upside from $920/oz-$927/oz.

We slapped on a near-term downtrend line exemplifying the prevalence of the moment. If Gold should rise through the upcoming congestion, then we could witness excited gains in the precious metal. Of course, the direction of U. S. equities will have much to do with the direction of Gold. Should the key U. S. economic data released today disappoint, then we could see the S&P tumble and Gold fly sky high.

The 30 Year T-Bond futures certainly recovered yesterday, putting on an impressive show. The 30 Year futures shot back above our uptrend line, logging huge gains despite slight gains in the S&P. However, the 30 Year futures are turning back from our 2nd tier downtrend line on Thursday.

Therefore, the futures may bobble between our uptrend and 2nd tier downtrend lines until the S&P futures make up their mind. Investors are uncertain whether to commit to the rally taking place on Wall Street. If equities should head south we could see the 30 Year futures pop above the 2nd tier downtrend line and test March highs.

The S&P futures failed to follow through on Tuesday's rally, seesawing to end the session with slight gains. Investor excitement from Tuesday was tempered by disconcerting economic news from Japan, China, and Germany. Production is grinding to a halt globally, showing the economic crisis continues despite the positive news from Citi. Meanwhile, foreclosures continue to pile up while unemployment rises.

Today's Unemployment Claims release came in at 654,000, topping analyst expectations of 642,000. Furthermore, the previous release was revised upwards to 645,000. On a positive note, retail sales beat analyst expectations today.

The S&P futures posted an incredible rally on Tuesday fueled by Citigroup claiming itself profitable thus far in 2009. The financials surged with Citigroup and Bank of America climbing an astronomical 38% and 28%, respectively. The movement was backed by solid volume, allowing yesterday’s rally to become a possible 1st step in a permanent bottom.

The 30 Year T-Bond futures tumbled yesterday in reaction to the huge surge in U. S. equities. Even though the 30 Year futures sold off, they are holding comfortably above March lows on Wednesday morning.

Therefore, the futures are trying to hold onto the uptrend while avoiding our 2nd tier downtrend line. The lack of commitment to the downside in the 30 Year futures shows traders aren’t entirely convinced by the rally in the S&P futures on Tuesday.

Crude futures declined yesterday despite a huge rally in equities. The fact Crude didn’t follow the S&P to the upside is confusing, and a bit discouraging for the bulls. Meanwhile, Crude has dipped below our downtrend line, indicating we could witness a continued selloff until our 2nd tier uptrend line.

The U. S. will release Crude Oil Inventories today. Analysts are expecting an increase of 0.1M barrels. If the number should come in higher than expected coupled with profit-taking in U. S. equities, this would provide the fuel for a sharp movement to the downside.