Just as we were getting a tad nervous about simmering currency wars, the G-7 announces there are no wars — everything is fine.

Then, a G-7 official announces that everything is fine except for the Japanese — who are obviously sort of fighting a little war (see Brainard’s endorsement of same…)

From Reuters about 30 minutes ago:

But, really, everything is fine…except that by now the markets don’t know which way is up anymore.  Hopefully by the time the pub crawl lands in Moscow, they’ll have their story straight.

The USDJPY, which had fallen to its channel midline following the Japanese Finance Minister’s comments that the yen’s fall had, perhaps, been a touch more than anticipated, rose on Brainard’s comments, fell on the first G-7 statement, and rose on the second.

The pair remains in our target area, but I wouldn’t put any money on it staying there – or anywhere for that matter.  With the press releases flying, who knows where it’ll land when the music stops?

The EURUSD is suffering from it’s own case of vertigo. In a now familiar refrain, the Germans and most northern EZ countries are just fine with the euro’s strength, while the more fragile economies of France, Italy, Spain, Portugal, Greece, etc. are taking it on the chin.

The equity markets have been all over the map, albeit in a tight range the past week. SPX is testing 1518 for the 6th time in less than three sessions.

Apparently, the market can’t accept our assertion that it’s time to sell off.  I don’t know why… Goldman did.

Speaking of Goldman, Apple CEO Tim Cook is speaking this morning at their Tech Conference.  Apple will offer a live audio feed HERE.

As discussed yesterday, I’ll add an intra-day long to cover any push above 1518.57 — which might be expected after the little IH&S pattern on the 5-min chart.

continued for members…

UPDATE:  10:15 AM

SPX just peeked above 1518.57 and immediately retreated.  The IH&S targets about 1522.40-1522.60, but I don’t see any strength building for this move yet.

Regardless, for those who are nervous about whether we’re at the top or not, an intra-day long at 1518.57 (with the same as a trailing stop) isn’t a bad idea.  Target  = 1522.60.

I’m keeping an eye on the RSI charts for signs of anything bigger.

I’m going to take a few minutes and put up some AAPL charts that I’ve been working on.  More shortly.

UPDATE:  1:25 PM

The AAPL charts are up and available HERE.

In the meantime, SPX has inched up past 1518.56 as we discussed earlier.  The tell was the 60-min RSI channel.  The IHS target is about 1522.40-1522.60, but there is a cluster of little harmonic targets in the 1521-1525 range.

Anyone who took an intra-day long position as we discussed earlier should have tight stops in place.

FWIW, 1521.22 is today’s value on the yellow trend line that runs from the 1347 top on July 21, 2011 through 1422.38 on April 2, 2012 and 1474.29 on Sep 14, 2012.   1521.22 is also the 1.618 extension of a little Crab Pattern  (Feb 8 high of 1518.31 and Feb 11 low of 1513.61) that incorporates the IHS.

UPDATE:  2:15 PM

Here’s a little RSI channel worth keeping an eye on.  It corresponds very well with the rise from 1498.

More in a few.