Crude oil - Gold Spread at Historical High

Spread is going big - something has to give.

Dr. Copper & Emerging Markets

The tightest correlation of Copper is with the S&P and Brazil looks like digging deeper after the yesterday's market rout.

BRICs Update: Multi-speed growth and trend dispersion

BOVESPA sitting on significant long term Support.

Russian RTS is trending higher Supported by the rising 21-Week SMA.

India's SENSEX is slowly approaching the flat Support at 18100 with a bearish 21/55-Week SMAs cross.

China's Shanghai Composite is in a long term range consolidation with a downside bias as the index is trading below all important Weekly SMAs. Critical Support lies at 2400 level.

Global Macro Update: Gold - EURUSD - Euro Stoxx 50 - 10Y Bund

Trend Channel Upper line shows 1645 as a potential target. First Support lies at the 1578 previous High in confluence with the 20-Day SMA.

EURUSD is trading right on the middle ground of the recent 1.40 - 1.46 range Supported by the converging 20 & 72-Day SMAs. Downside the 200-Day SMA holds the key at the major psychological 1.4 level.

DJ Euro Stoxx 50 Index is trending down with scope of 2599 Lower Channel trendline.

10-Year German Bund is trending up amid growing economic concerns and US and EZ Periphery Debt problems. Previous High at 131 is an obvious target for the current directional move.

BOVESPA - Brazilian Equities in a Downtrend

Downtrend target for BOVESPA > 58000 where previous Low should act as Support.

Vale is sitting on the 20 Day SMA and 32.02 looks as short-term target where the 200-Day SMA lies.

Petrobras hits Resistance at 35.19 and goes back to base around 33 and 33.65 where the 20-Day SMA would provide Support.

ITAU Bank trend down the channel with a target at 18.85 - a confluence of old Lows and the 200 -Week SMA Support.

Markets Bounce in the current donwtrend

Sell in May and Go Away?

S&P broke important support and technicals already signal a reversal - at least in the short term. A move below the 50-Day MA will accelerate the move.

Silver is breaking painfully down towards the important area of support around 30-34 levels.

Looks like a bubble unwinding but let's see what the end of QE2 brings as inflation is still not on the radar of CBers.

As indicated in the previous Global Macro update, Copper is moving toward 408-410 area which is a 'make or break level'. Below it the 200-Day MA will hold the move, however we might see a major exodus out of commodities once a snowball effect takes place as too many players jumped on the bandwagon of the inflation theme and maybe overstayed their welcome. Let's see how Copper will trade at the 400 level.

QE2 seems to come to an end and yet again deflationary fears are rising.

Rates are dipping down towards the 3.2% Support and if broken they will target again below 3%.

Are you ready for a bounce?

It is always important to wait for a confirmation and not jump in anticipation so I'm just making this observation that the trend is already overextended and technicals are in Oversold conditions for quite some time so a reversal is highly probable. When, how much, and whether it will be a Major reversal is to be seen.