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The call last week was for a new high in equities to complete a 5th wave. This scenario remains favored over the next few weeks but allow for weakness in wave 2 of 5 over the next few days. The S&P could drop 12 to 26 points from the overnight high before turning up.

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Afternoon Technicals (all charts)

Other TA (crosses, COT, etc.)

-EURUSD-bouncing from small 4th wave support (13086). Stronger support in the event of a dip from here come in at 13014/51. The EURUSD is at a high risk level for bulls right now but a drop below 12990 (and spending some time below) is needed to suggest that some sort of a top is in in place.

-AUDCHF-intraday action remains constructive and I’m looking to increase long exposure below 9540. Risk has been moved up from 9435 to 9489.

-EURJPY-stopped out of shorts at 10390 for a 70 pip loss. The next level that could produce a market response is 10451/81. 10451=50% extension of 9411-10385 / 9963. 10461=April low. 10481=61.8% retracement of 11143-9411.

-AUDUSD and NZDUSD – remain constructive against 10270 and 8108 but the reaction at the highs this morning is suggestive of pullbacks. Supports are 10325/39 and 8142/61.

-AUDNZD-is approaching resistance from 12687-12717 (JS Thrust day close from 9/13 and 38.2% retracement of decline from 13277). Shorts into that level may result in a return to the former 4th wave at 12487.

-SPX 500-The call last week was for a new high in equities to complete a 5th wave. This scenario remains favored over the next few weeks but allow for weakness in wave 2 of 5 over the next few days. The S&P could drop 12 to 26 points from the overnight high before turning up.

AUDCHF – 60 Minute Bars

Short_Term_Trade_Setup_in_AUDNZD_and_SP_500_Implications_body_audchf.png, Short Term Trade Setup in AUDNZD and S&P 500 Implications

Prepared by Jamie Saettele, CMT

AUDUSD – 15 Minute Bars

Short_Term_Trade_Setup_in_AUDNZD_and_SP_500_Implications_body_audusd.png, Short Term Trade Setup in AUDNZD and S&P 500 Implications

Prepared by Jamie Saettele, CMT

NZDUSD – 15 Minute Bars

Short_Term_Trade_Setup_in_AUDNZD_and_SP_500_Implications_body_nzdusd.png, Short Term Trade Setup in AUDNZD and S&P 500 Implications

Prepared by Jamie Saettele, CMT

AUDNZD – Daily Bars

Short_Term_Trade_Setup_in_AUDNZD_and_SP_500_Implications_body_audnzd.png, Short Term Trade Setup in AUDNZD and S&P 500 Implications

Prepared by Jamie Saettele, CMT

SPX 500 – 60 Minute Bars

Short_Term_Trade_Setup_in_AUDNZD_and_SP_500_Implications_body_spx.png, Short Term Trade Setup in AUDNZD and S&P 500 Implications

Prepared by Jamie Saettele, CMT

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Jamie is the author of Sentiment in the Forex Market.

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This article was provided by DailyFX.com.