Friday’s action in the US session raises some interesting dilemmas for the bulls.

The prevailing objectives of the major funds are to tap into abundant liquidity at virtually zero rates of interest, exploit the carry trade and keep asset prices moving higher.

The AUD/JPY currency pair is making larger moves, and the range expansion with a negative tilt in yesterday’s trading was coinciding with some S&P 500 weakness.

As the US dollar continues its slump and the enthusiasm for other currencies is not wholehearted, there is clear evidence that the appeal of commodities as a proxy for purchasing power is increasing.

Clive Corcoran will be monitoring the Nasdaq 100 index (NDX) this week for any suggestion that the large trading desks are looking more carefully at their high beta exposure which will, should there be a waning in the animal spirits, drop faster than the broader market does.

The high beta index, the Russell 2000 (RUT), could be stalling at current levels and has failed to make a comparable push this week to that which has been seen on the DJIA and S&P 500.

Proprietary trading desks and hedge funds are revealing an enormous appetite for Australian dollars.

HYG, which tracks the high-yield debt sector, and which took a battering on October 1, may have reached the top of its pullback channel.

The four-hour chart is more traditionally used by foreign exchange traders but can also be useful for providing a slightly different perspective on equity indices.

The daily chart for the Russell 2000 index (RUT) reveals that a close above the 615 level - or just above yesterday’s intraday high - needs to be achieved soon to alleviate the concern that the mid-September levels do not represent an intermediate-term peak.