By: Tom Gentile
on February 18th, 2022
I use the SPDR S&P 500 ETF Trust (SPY), which has as its’ goal being able to track the performance of the S&P 500 Index as the instrument to reflect what is going on with the equities market.
The SPY is at risk of reaching the prior price lows of January.
I have emphasized the most glaring concern, which being the situation between Russia and Ukraine in previous entries. I also mentioned the prospect of the Fed raising short-term interest rates starting in March as another concern the market is trying to deal with.
Stock Market Doesn’t Like Uncertainty
When there is confusion as to what will happen with the fed or what will happen in the global scheme of things the markets tend to sell off. Investors want to have a clearer idea that their money isn’t at as much risk before they actually put it at risk.
That isn’t the case due to the two concerns I mentioned.
Look at the chart on the SPY:
The SPY had a pivot low on its low back mid-January.
The markets, the SPY, bounced higher from there and people were calling that the Tech dip and referenced the buying coming back into tech and the markets.
But as of late the ongoing uncertainty mentioned has the markets selling off again.
Making the prospect of the SPY retracing to those January lows a possibility.
Morning Report List from Toms Option Tools
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