The markets are ready for a breakout or breakdown — best illustrated by the pennant we’ve been watching in USDJPY.
If the small purple pattern breaks down, the red channel should get some fleshing out. The key will obviously be the ability of the red midline to hold.
SPX just reached the purple 1.618. Great level to try a short position — with stops, as always.
If SPX were so inclined, it could tag along either intra-day or on tomorrow’s opening to 1770.97. But, I wouldn’t consider a long position to capture those last 6 points unless I had the means to hedge overnight.