SPY - Road to $400
What could cause the next sell off?
1. New virus mutations
2. No stimulus deal
3. Looming eviction crisis
4. Valuation concerns and earnings miss
5. Technical bearish divergence (look at all previous similar set ups on the chart)
6. Possibility of Govt shut down
7. Cyber security breach. What news can come from it?
8. Trump and recent Iran tensions
If any or a combination of these catalysts materialize, House and Trump will have to come to an agreement fast (before inauguration) and approve the MAGA way stimulus plan. If 20-30% of all money supply was created in 2020 - DO NOT expect SPY to go anywhere close to $220 (thats just mathematically not possible) and thats wishful thinking....even if you a perma bear.
What seems to be possible is a brief drop to $320-330 area, on the way there we would fill a few gaps and we would turn around on stimulus deal and go to our long term ultimate target of $400.
What about gaps down below? Well, they will have to wait for now.
Definitely do not take any of my posts as a trading advice but hopefully you find them somewhat useful.
1. New virus mutations
2. No stimulus deal
3. Looming eviction crisis
4. Valuation concerns and earnings miss
5. Technical bearish divergence (look at all previous similar set ups on the chart)
6. Possibility of Govt shut down
7. Cyber security breach. What news can come from it?
8. Trump and recent Iran tensions
If any or a combination of these catalysts materialize, House and Trump will have to come to an agreement fast (before inauguration) and approve the MAGA way stimulus plan. If 20-30% of all money supply was created in 2020 - DO NOT expect SPY to go anywhere close to $220 (thats just mathematically not possible) and thats wishful thinking....even if you a perma bear.
What seems to be possible is a brief drop to $320-330 area, on the way there we would fill a few gaps and we would turn around on stimulus deal and go to our long term ultimate target of $400.
What about gaps down below? Well, they will have to wait for now.
Definitely do not take any of my posts as a trading advice but hopefully you find them somewhat useful.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.