Gold threw us another curveball yesterday, reversing back to a negative correlation with the EUR/USD and GBP/USD. Is it possible the precious metal's normal negative correlation with U. S. equities is coming back into play?

The price of Gold deteriorated over the last 24 hours before testing March lows and our 1st tier uptrend line. As we stated previously, we believe our 1st tier uptrend line to be the final straw for Gold's uptrend.

If this trend line can't hold, we could witness a rapid selloff. The S&P futures reflect the significance of the moment as the knock on the door of 2009 highs.

Crude futures are soaring higher from our 1st tier uptrend after weekly inventories came in lower than analyst expectations. Yesterday's improvement in U. S. housing and manufacturing data is exciting the rally as investors shrug off disappointing unemployment numbers.

Of most interest to crude traders was the news that auto sales this month did not decline as much as analysts had feared. Greater incentives and special deals offered by auto retailers are finally attracting new buyers as the U. S. Treasury fights to keep interest rates at a reasonable level.

The rally in the 30 Year T-Bond futures faded yesterday after the U. S. released better than expected housing and manufacturing data, sending equities higher and treasury futures lower.

However, the 30 Year futures are recovering Thursday after the U. S. released more negative unemployment data. Hence, with the U. S. taking care of the excess supply of treasuries via quantitative easing, the 30 Year futures are falling in line with their ordinary negative correlation with the S&P futures.

The futures are struggling with the concept of retesting March highs. There's certainly a wide range the 30 Year futures have to deal with to the upside.

The S&P futures brushed aside negative unemployment data, piecing together an impressive rally on the back of better than expected existing home sales and manufacturing data.

The economic crisis began with the collapse of America's housing market, so stabilization in housing gives investors hope the worst of the economic crisis may be behind us.

Furthermore, improvement in the housing market gives investors confidence that the stimulus initiatives enacted by the U. S. government will be successful. In addition to the positively-mixed economic data, investors found comfort in a constructive meeting between America and China at the G20.