Technical Concern for the Stock Market Based on This Week

Tom Gentile

Posted in Daily Report

By: Tom Gentile on February 18th, 2022 • 2 mins read

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:

Spy Feb 18 2022

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

Morning Reports Feb 18 2022

App: Toms Option Tools

Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.

Other times I will have other charts may work to amplify my educational points. 

Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.

Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.