The EUR/USD is picking itself up after yesterday's losses, preventing a close on the 4-hour below 3/30 lows. Strength in the EUR/USD comes despite a higher than expected Unemployment Rate for the EU region.

We notice a tight positive correlation between the EUR/USD and the S&P futures as we've seen throughout the economic crisis. Investors expect a recovery in the EU region to follow stabilization in America's economy, improving the outlook for German and French manufacturing.

Gold is rallying Wednesday, following the appreciation of the Euro and the Pound. The correlation between Gold and the EUR/USD and GBP/USD is becoming clearer by the day.

However, the correlation is odd since these two currency pairs are positively correlated with the S&P futures when Gold is normally negatively correlated with U. S. equities.

As a result, Gold is opting to exhibit a positive correlation with U. S. equities, a strange occurrence we've witnessed periodically throughout the economic crisis.

Gold has normally shown a positive correlation with the S&P futures during large legs down in the past, which could be foreboding for U. S. equities.

Crude futures are sitting right on our 1st tier uptrend line as investors await key economic data from the U. S. including the weekly Crude Oil Inventory number. Inventories have risen beyond analyst expectations for the last four weeks.

Crude futures are already under pressure from what appears to be pending bankruptcies from both GM and Chrysler. Considering the impact the failure of two of America's major car manufacturers are having on the outlook for future consumption, higher than expected inventories could send crude futures spiraling lower.

Crude futures are already trading below the psychological $50/bbl. If our 1st tier uptrend line can't hold, we could see the futures drop suddenly towards the $45.50/bbl-$46/bbl area.

The 30 Year T-Bond futures have performed nicely over the last 24 hours and look to attack their 3/19 highs. The strength in the 30 Year futures contradicts those optimistic on U. S. equities.

However, we can't disregard the historical movements made on 3/18 and 3/19 after the Federal Reserve announced its plan to participate in quantitative easing. We expected reflections from such a large movement backed by high volume, and this prediction may be coming true.

The 30 Year futures are making a statement by distancing themselves from our near-term downtrend line. Therefore, we wouldn't be surprised to see a breakout to the upside approaching. However, such a movement would likely require an accompanying decline in the S&P futures.

The rally in the S&P futures fizzled yesterday to end with modest gains. Uncertainty is returning to the market as the bankruptcy of both GM and Chrysler seem more likely by the day.

The failure of these two large auto manufacturers could have a systemic impact on unemployment and consumption, further weakening a sagging U. S. economy.

Though financials finished with large gains on Tuesday, they still sit at questionable levels. The S&P futures were fighting to close back above the highly-psychological
800 level earlier today, but the futures are faltering after the ADP Non-Farm Employment change came in much lower than analyst expectations.

The USD/JPY continues its sideways battle as investors await the incoming Tankan Manufacturing Index. Japan released some mixed data earlier today, including worse than expected Unemployment and Average Cash Earnings numbers.

On the flipside, Household Spending declined less than expected. Despite the encouraging Household Spending number, the data coming from Japan reiterates the same negative theme. Though new economic stimulus seems imminent, Aso and the BOJ aren't budging as the G20 Summit approaches.