AUDJPY vs SPX500 - Good odds the next leg lower has started

The above chart shows the positive correlation between AUDJPY and SPX500 for the date period since 02/01/19. Since last night the AUDJPY has started the next move lower with great momentum suggesting that the highs should be in place at 79.80's. Taking into consideration the positive correlation and assuming the correlation will not break, SPX500 should start rolling over from it's recent highs at 2738's to respect the correlation. If the above the scenario starts to get validated, the SPX500 should continue lower until AUDJPY reaches the 77.50's, a level from where a reaction to the upside should happen with AUDJPY. Worth to mention that the equivalent level to 77.50's of AUDJPY is the 2600's for SPX500.

At this stage we should be waiting first for the turn to the downside for SPX500, once that happens we will be able to call the extend of the decline either to 2600's or if below to new lows.

Comment:

And we have started the move down..