SPX Update

Here is my latest SPX chart. It looks fairly obvious to me that the SPX is forming an Ending Diagonal. The moves from the bottom of wave 4 struggle to be defined by any other patterns. In line with this count I expect an increase in risk appetite over the coming session, before a reversal and sharp fall later in the US session. I have sold out of my previous short from 1160 at break even and will look to re-enter again at around 1180. This is a very long term trade and the risk to reward expected on it is excellent. Because I expect equities to top out here and plummet for months a set target cannot yet be defined as yet. Keep risk at 1220 if you can or at least at 1195, just above downward sloping resistance if you want to keep risk tight.

USD/JPY Ending Diagonal 30 Minute Chart

Here is my 30 minute Ending Diagonal count for the USD/JPY pair. The pair may have topped out and completed a large correction at the recent high at 93.64. The series of 3 wave moves from 92.20 fits perfectly with an ED patten, so even if this correction isn't over and we are going to consolidate for longer, it is likely that price will fall to at least the 92.20 level as it is the norm for ED's to retrace to at least the level of their point of origin. I believe we are soon going to see an acceleration to the downside in a push well below the wave 1 low at 88. I have taken a short from 93.50 with a stop just above the high. If you are going to get in on this trade keep your stop at 93.65.

Covering My Short Positions

It is 7.40 a.m. GMT and I have decided to take profit of my EUR/USD, AUD/JPY and SPX trades due to the lack of clarity on smaller time frame counts and some very bullish looking signals in the aforementioned and some other correlative markets. If you have been following my trades and want to keep up to date with my intraday movements I post live update throughout the day via my Twitter account. I will be looking to re-enter all these positions from a higher level and will post updated charts (if previous counts are invalidated or begin to seem improbable) and orders when opportunities occur. Good luck!

SPX 30 Minute Chart Update

Here is an update of my SPX count. The retrace from the low is sufficient in size to assume that is it a larger cycle 1-2 rather than a 3-4 as I previously thought. I am expecting one final push above 1165 to complete this correction from where I will be looking to take a short position on the completion of the wave 5 (v) of C. At present we may be nearing completion of a wave 2 of 5 (v) or we may still be in a wave 4 (iv) of C. I have marked the Fibonacci rations with wave 1 = wave 5 for both possibilities. If we move to below 1130 without first pushing up in a final motive wave this count will be invalidated. Look to get short from around 1180 with a stop at 1210. This is a medium term hold position which offers a great risk to reward. For more info see Roy's latest video on the SPX.

EUR/USD 15 Minute Chart

I believe the EUR/USD has finally started moving lower again and will accelerate to the downside after a small retracement from gap support. This will likely coincide with a drop in the price of equities, and an overall shift towards safety. The move from the top at 1.3095 so far looks impulsive and the Euro has been comparatively weak across the majors which I expect to continue over the coming few days. It does not appear that the news about the situation in Greece has done much to shift overall sentiment toward the Euro. I took a short position from 1.2990 and have my stop just above the high at 1.31. If you are looking to enter the trade wait for a pullback after the gap is closed but beware if equities drop off and the markets move into a state of panic price may slice through support at 1.2750 and 1.2550 hard and fast.

SPX500 Hourly

Here is my hourly SPX chart. I think we are currently reversing in a wave C of 4 and will test above 1140 before turning bearish again. Not much else to say on this one except I am very bearish long term on equities from this point. I will be looking to get short again at around 1150/1160 with my stop at the wave 1 low of 1180.

AUD/USD Daily

My AUD/USD count is similar to my AUD/JPY count in the fact that I think we are about to drop in a wave 5 of 1 down. As long as the USD remains weak against the Yen however, it is a better idea to trade the AUD/JPY than this pair. As you can seen resistance at 94 was too strong for the Aussie to break through and price has fallen off sharply in what looks to be an impulsive third wave. If equities  remain weak expect the AUD/USD to as well.

AUD/JPY Hourly

There were some huge moves away from risk in the recent US session. Price has rebounded quite strongly however I think this move is a sign of things to come, and the push up is just the last of the optimists throwing their money away before the markets come crashing down in a state of panic and fear. I am currently short the AUD/JPY as I believe it is the best barometer of risk being the highest yielding currency pair. Price has rebounded to a level which I believe is a good spot to get short so I will be adding to my position soon. Look to sell at 83 with a stop at 84.

CAD/JPY Daily Update

There don't seem to be many obvious trades for me to discuss at the moment. The sharp drop from the top in many pairs hasn't had the immediate follow through I would expect if this were the beginning of a new panic driven cycle. While I am still bearish on equities and commodities, it is possible there will be one more push higher before a turn. Here is my daily CAD/JPY chart, which points to one last push up before panic and fear retake the markets and prices plummet. If price does continue to fall and 88.458 is breached, than my count is off and it will signal that the top is likely in.

SPX Head and Shoulders Neckline Breach

Looks like we're finally getting some action. There were big moves in several markets overnight, gold has fallen sharply and looks to have topped out for a while at least. Here is a head and shoulders pattern which has formed on the SPX and as you can see the neckline has been breached. I am going to get short on a retest of this line with a minimum target of 1142. Although I will likely hold for much longer than that as this may be the top in this market we have all been waiting for.