Rate follows GBP in two-way action, holding support now at 1.2550 area once again. Aggressive traders can add to open longs on this dip.

Cross-spreaders supporting rate as GBP drops. Stops building on both sides as the rate tests for stops on the downside first. Upside stops likely building in the 1.2630/50 area again, overhead resistance at 1.2720 area now with stops likely the other side. Key 1.3030 area likely next; failure to hold 1.2900 likely going to be the test for the bulls this week.

The S&P futures got slammed again yesterday with negative news coming from all directions.Moody's cut its debt rating on JPMorgan and is considering doing the same for Bank of America and Wells Fargo.

The news sent financials tumbling and brought the rest of the market along for the ride. It's hard to miss the fact Citigroup trading under $1/share on Thursday, creating an incredibly negative psychological impact on equity markets.

Furthermore, GM dropped below $2/share, making the company's sustainability doubtful. Investor uncertainty is rampant, and there is no bottom in sight at this point.

The 30 Year T-Bond futures surged on Thursday with the S&P futures continuing their freefall.

Despite the rising supply of long-term treasury bonds in order to raise capital for the government's large stimulus plan, the negative correlation between bonds and equities has been reactivated.

The 30 Year T-Bond futures rose well above all of our previous resistances are approaching our uptrend line with the downtrend lines fading into the distance.

We expect the continuation of sizeable near-term gains should the 30 Year futures climb above February highs.

Crude futures recovered from their losses on Thursday despite another day of crashing U. S. equities. With U. S. inventories declining and investors expecting increasing supply cuts coming from OPEC on March 15th, crude is finding considerable strengthen despite the economic turmoil in America.

Furthermore, China continues to build their stockpiles of crude, taking advantage of what the government views as bargain prices for the essential commodity.

However, U. S. unemployment is rising at a hurried pace while the economy deteriorates, placing a downward pressure on crude that is preventing it from breaking out to huge gains.

Gold posted impressive gains Thursday in reaction to free-falling U. S. equities.

Gold darted above our 2nd tier uptrend line and is currently sitting right below our previous resistance of $937.81/oz.

It seems the negative correlation between gold and equities is making its grand return.

If gold can hop above March highs, we could see a large surge to the upside. Gold's uptrend seems comfortably back in play now with a bottom in the S&P futures nowhere in sight.

Fundamentally, we hold our resistances of $937.81/oz and $945.57/oz with fresh resistances of $953.32/oz and $959.84/oz.

To the downside, we find supports of $930.76/oz, $925.09/oz., $918.58/oz., and $910.33/oz.

The Euro posted some solid gains against the Dollar in the last 24 hours. Investors bought on the news after the ECB cut its benchmark rate by 50 basis points, in line with expectations.