It is Friday so naturally I will make this shorter than usual. The Week Ahead post will come out on Sunday morning – will have 2 videos, and 20+ annotated with a couple paragrpahs of written commentary as well.
Basically to sum things up for today – I believe people will feel more comfortable going out into the weekend short the $SPY or short in general. We had a potent down move, broke some key levels and look to be headed lower. The 1600 seems to be a natural target for this pullback (if a pullback does truly occur). From there we will have to measure the action again and see where we are headed from there.
The wedge for the past week was a time to make some adjustments, take trades, and wait for it to resolve. It resolved today, and it looks lower. Either you embrace it, and maybe short a little or you go to cash and live another day – all depends on what you are comfortable with.
Have a great weekend. Will check in on Sunday. Here is the $SPY chart –