Another Squeeze Ride or a Change in Scenery

Given the gaps lower on the major averages today, this session is shaping up as one of the more hopeful ones for bears in 2017. It goes without saying for anyone who has been tracking markets the last few years that equities have been remarkably, if not historically, resilient in the face of typical warning signs and exogenous shocks. 

Thus, the issue headed into the rest of this action-packed week is whether we are simply setting up for another short squeeze higher and V-shaped recovery back to new highs or, instead, if today's action marks the beginning of an overall reset in equities since Election Day.

I suspect we will not arrive at a conclusion to that issue until we at least get to the FOMC Announcement reaction Wednesday afternoon, along with a slew of major earnings before and after. 

For now, I am staying light and have a few tester bets on. In tonight's full video recap for Members, we will also take a look at some potential Super Bowl plays to keep on watch.