Even though the S&P 500 has now broken through the 2002 low both the DJ 30 and the Nasdaq have not done so yet, in fact they the Nasdaq is a little ways off. As trading late Thursday and early Friday skirted with the 2002 lows on the DJ 30 buyers began to step in a little despite the Citi debacle which is a large component of the Dow. So it seems unlikely that the 2002 low will be broken on this leg down and a bounce seems imminent in the major indexes (although you should scratch that comment if Citi fails completely). Under these market conditions any bounce in equities will temporary leading to more selling around the 9700 level and the 11000 on the Dow. With the S&P 500 sellers will step in around the 960 and 1150 area. From another round of selling looks set to take place that will take the averages below the 2008 lows. Crude Oil has experienced a huge correction from the highs of near $150.There is an enormous amount of technical support between $50 and $37 with many fundamental reasons to buy around these levels. Look to buy any sell off from here and even start looking at a small position at these levels as historically the winter lows have always been good entry points for a rally into the spring. A rally from here through the winter should leave crude oil between $75 and $67 area. Many economists are using the âDâ word like that is what we are seeing right now which is not true. Currently we are experiencing an extreme lack of confidence from the major players coupled with huge redemptions at funds, which is leading to a massive liquidation. There is a difference between liquidation and deflation. The central banks are printing money like there is no tomorrow which is going to avoid deflation during this current crisis, however what we should be concerned with is inflation especially in commodity prices. Commodities are nearing good entry points for a long term buy over the next few years. Farmers and miners cannot get the needed loans they rely on to buy equipment and fertilizers meaning a reduction in production. Sugar could be a great buy if it sees 10c again as crude oil is expected to rise again and manufacturers are looking for a cleaner and more socially responsible alternative to corn based ethanol. The upward trend in the USD is highlighted here with the EUR/USD pair. I spoke a few weeks ago that we will be starting to see a top in the USD, and while I still stand by that analysis there is a potential for a selling climax down to the 1.21-1.7 area on this pair.