SPY ETF Analysis (S&P 500 January 17th-21st)


Analysis done on two hour candles. Markets are headed into a shortened week of trading in observance of the Martin Luther King Holiday, but the week is still jam-packed with exciting new earnings reports. The last week was a turbulent one for large cap names due to uncertainty from Omicron’s impact on the economy and the continued rise of inflation, but earnings season may restore the confidence. Many companies like be reporting on their 4th quarter performance which is historically a strong quarter due to holiday shopping. The first set of earnings in focus for this week will be bank earnings on Tuesday and Wednesday, which will help gauge economic health since banks typically deal with lending and borrowing in every industry from consumer, retail, and corporate. We saw financial stocks underperform in the last 24 months when compared to tech, but since interest rates are expected to rise this year, financial stocks may begin gaining more market share. Looking at the technical analysis, our major indexes are all experiencing a pull back, but w are still in a healthy position overall and are on track for a bullish push in the coming weeks.