Friday’s candle could be telling, the market has been very resilient and corrections have been fickle and very shallow. We have to see price action to see if there is a top formation to have stronger conviction that a short-term top is forming.
We include AUDJPY on the chart to illustrate the strong correlation. FX looks like it topped and corrected. Now we have to figure out if this correction in FX was leading and has run its course, or if the corrective wave will run deeper and take both these assets much lower.
Risk Reward wise, the SPX index looks expensive and one could risk the HIGHS in opening a speculative short position. We will keep looking at charts with intent and figure out proper game plans.