Hi Philip,
well, it is hard to complain with the book and what you wrote 
And thanks for looking after the issue much that you even searched it in the book!
I am no Murphy by any means and can only share my own thoughts with you, it might not have any sense of course. And you might not be missing anything at all.
I will share you know what I see and think:
When you mentioned the monthly chart in the end of your post, you sounded like a typical analyst, who is always right. Basically you defended yourself that a fall is coming but you do not say when and how large it is. So if it is in 2 months, you are right, if 2 years, you are also right If it will be 100 points you are right, if 500 point you are also right :-))) I am not teasing you, just to make sure how I interpret the last part of the post :-)))
Why am I bullish at this moment on S&P then? One part of the reason is your own post on yield curve. Another is the small caps with new high. The next one are the technicals which are all in an uptrend. And last but not least the fundamentals which show a low inflation situation and that is also good for stocks. As we discussed this week, I want to learn more about crashes to try and spot them as I have no idea when the next comes. And I have a SL every time on the trades. But these were the reason I am bullish on stocks.
And now on Murphy and the book. I follow those priciples as well, I like a book a lot. But Murphy also said we have to put these relations into perpective. I diverge with two of Murphy´s statements. First of all IMO the stock cicles have a different periodicity than currencies. Stocks are on the rise since a couple of years, this is a lot tougher by a currency. If Stocks rise 6-7 years continuously I can imagine that, however I cannot imagine a EURUSD falling 6-7 years continuously from 1.4000. Based on this assumption they have to diverge many times. The other thing is that I always consider commodities and stock markets completely different from currencies. Commodities and Stokcs in the very long history are “always rising”. They have huge retracements but prices go up. By currencies we cannot expect the EURUSD going to infinity on the upside. That is the reason why many people do not like to trade stocks to the downside but with currencies everyone has to be very flexible. This second reason is for me also important and shows that I have to observe stocks completely different from currencies.
I do not think the FED bluffed. The expectations were just enorm and I think most scenarios would have resulted in such a reaction. For stocks is the low inflation low rates scenario is great so they increase. For the USD the low rates scenario is bad so they decreased, and as you said, if USD decreases Commodities gained. After the dust settled, USA is still doing than the others so the currency started to make the lost pips back against both commodities and currencies, but not on stocks as the situation is just ideal for stocks. I think it all makes great sense.
On relationship with commodities, bonds etc. I agree mostly and as I said this is only my very personal view and it might be all wrong.
FE
Edit: S&P is moving nicely until this point
