Last night’s high in the Aussie basically completed a 40 year journey trading within ticks of the all time 2/3rd’s. As previously discussed, the Aussie has historically been a good risk indicator. Strong Aussie=strong equities. This is another piece to the puzzle, and one more reason that caution should be exercised with long stock portfolios. You can always get back in or lift your hedges.

My initial thoughts earlier in the day still hold, the chart patterns will likely remain intact in the S&P with no outside reversals. We’ll soon know.