Gold continues its relative consolidation while sitting right above our 2nd tier uptrend line right now. The fact the precious metal hasn't made a large step downward in the last 24 hours is a positive development as far as the uptrend is concerned. Gold bugs are waiting to see how the significant U. S. economic data pans out today.

The direction of Gold seems to be a coin flip, and will depend on the direction of U. S. equities. We expect the negative correlation between the two to hold true during fundamentally meaningful moments such as these.

The 30 Year T-Bond futures continue to weaken after reaching our inflection point yesterday. The downward movement came despite a late session selloff in U. S. equities. The 30 Year futures are showing us time and again their normal negative correlation with the S&P futures is out of sync due to outside market forces.

The combination of the large increase in supply of government debt coupled with China losing its appetite for U. S. Treasuries is raising yields and lowering price. Due to the mass confusion and uncertainty swirling around U. S. Treasuries, the 30 Year futures remained locked within the trading range beginning in early February.

The S&P futures logged a sharp late session selloff on Monday to end the day on a negative note. The downturn came in reaction to news that American Express is experiencing a rising delinquency rate on its consumer credit cards. This news reflects the worry that the debt of U. S. consumers is rising in the face of higher unemployment coupled with skyrocketing foreclosure rates. Furthermore, all of the U. S. data released yesterday came in below expectations.

Rate holds gains and makes new high overnight; stops seen above weekly highs around the 1.4050 area. Tests support on pullback and holds for now. Lows likely remain secure. Reversal off weekly lows a positive technical but the volume needs to come up and I think the shorts have yet to bail as a group.

Traders report stops in-range adding for two-way action. Long-term tech resistance now at 1.5000 area likely to cap near term but stops are building above and the 1.5000 handle is a big psychological number. 23 year lows are very likely to hold on any break with long-term support at 1.3500 area now in play.