S&P 500, EUR/USD and AUD/USD - All ready for the next leg lower

The count in S&P 500 and AUD/USD har been more or less perfect. The count in EUR/USD had the wave 2 correction a bit higher, but as I stated the other day, the very shallow correction just indicates, that the EUR is very weak. Remember, that we saw subnormal correction in wave 1 down too. That could mean, that touble for the Euro-zone is brewing. The spread between the govenment bonds in Grecce, Portugal, Spain og Ireland are all on the rise again.

In S&P 500 we should see a break below 1,069.84 soon for a violent decline down to 1,004.23, where wave 3 will be 1,618 times longer than wave 1.

As mentioned above the EUR is very weak and a break below 127.32 will trigger a decline down to at least 123.20, but more likely the decline will extend to 119.46, where wave 3 will be 1,618 times longer than wave 1.

Finally looking at AUD/USD it looks like wave (3) is ready to take it down to 87.33. As wave (i)
and wave (iii) was almost equal in length, then we migth expect wave (v) to extend, but time will show.