Daily Market Comment

EQUITY - It appears that the intermediate term decline has commenced. Support levels for this decline should be 1416, 1406 and 1396, with 1406 the most logical level for support.

10 Year Note - While I continue to expect the 10 year note to rally as the equity markets go through their intermediate term decline, today the credit markets were spooked by the petroleum inventory numbers. However, they reacted much more extreme that the petrol markets themselves so I do expect this little increase in rates not to hold. Look for rates to move lower over the near term.

CORN - It is very possible that the small short counter-trend rally we had in Corn is all the market could muster up. Thursday is going to be a good indication as to the short term health of Corn. If it continues to move lower then look for the intermediate term downtrend to continue in earnest. Corn still has a long way to go on the downside before it gets even close to an all clear area.

COCOA - Another rally attempt in Cocoa today that was met with failure. Much like Corn, Thursday is going to be a key day to indicate the future short term price movement for Cocoa. I am expecting sharply lower prices to continue.

CRUDE OIL - The last 2 days has seen Crude attempt to stabilize after its hard 5 day decline. I do not think Crude will be able to fend off the sellers in here and I continue to look for sharply lower oil prices.

USU - The intermediate term decline in USEC Corp. looks like it started today with a sharply lower day. However, after a stock such as this has accumulated so much support over its most recent rally, we need to expect some type of snap back before the stock begins its decline in earnest. This may be as simple as an intraday move or it might take a day or two. Personally I see it taking place on an intraday basis.

DVSA, BDAY and DF - No real change in the condition of these stocks. Although Dean Foods had a very impressive rally today it continues to produce a pattern that foretells of a sharp sell off. Of course all three of these stocks appear to have put in a major trend shift with the formation of the Three White Soldiers I am merely looking for them to pull back to their respective levels associated with the pattern. If you cannot remember where that price level is take a look back at the educational module on the candlestick pattern.