TE Shakedown 9/10/17
We're coming off a holiday shortened week --- that felt like an elongated week. We came into the week expecting a slight pull back in the market after 4 straight days higher -- but Tuesday ended up being a bloodbath. Since then we've consolidated and created an inflection point in the SPY between the $246-247.50 area. If we decisively break above the $247.50 area it will likely lead to a more risk-on environment. If we decisively break below $246 I would expect us to test the next support around $245 area. High beta names were exceptionally weak Friday which leads me to believe there will be more short-term downside ahead, but we will see. Will be paying very close attention to the circled area below.