The 30 Year T-Bond futures backed away from our 126.64 resistance on Monday despite the massive selloff in U. S. equities. Since equities and treasuries are normally negatively correlated, the lack of movement to the upside in the 30 Year shows the downtrend is intact.

Furthermore, the fact the 30 Year futures are declining with equities shows investors are concerned the demand for government debt is insufficient to satisfy supply. As a result, yields are rising and price falling, placing exorbitant downward pressure on the 30 Year T-Bond futures.

Corn futures recovered a bit yesterday despite the steep selloff in the S&P futures. However, the corn futures are still below our near-term downtrend line and all three uptrend lines. Therefore, we maintain our negative stance on corn. If corn should fall beneath February lows, then we anticipate a large selloff with a possible retest of December lows.

Corn futures are following the path of U. S. equities. With Prelim GDP coming in well below expectations, investors are anticipating the demand side of the equation to diminish further. As the U. S. economy grinds to a halt, food consumption should decline.

Crude futures crashed on Monday, following U. S. equities into the dumps. Valuations in the stock market have investors worried about the U. S. and global economy as a whole for obvious reasons. Therefore, investors ignored the OPEC supply constraints and sent crude tumbling. However, Crude futures are recovering above the psychological $40/bbl area on Tuesday, and are now lodged solidly between our 1st and 2nd tier downtrend lines.