SPY (S&P500) Analysis September 22nd, 2021


Analysis done on 30 minute and daily candles. We have a critical day ahead of us tomorrow as the Fed decide the fate of monetary policy and how they plan to strategize to end the year, the main topics in focus were discussed on our SPY analysis last Sunday. Another major event to add to the mix is the recent default of Chinese giant Evergrande. The company is running out of money quickly and they are going to hurt the pockets of many Chinese and offshore lenders (Us). With the uncertainty of overall world economic health, Evergrande’s recent headlines caused a ripple effect of fear across world markets. It’s important to understand that when giant investment and real estate companies go bankrupt, those people owe borrowed money to banks and lenders across the world and the money will be lost if Chinese doesn’t bail out Evergrande, the decision is yet to be made. As far as SPY’s chart goes, we ended the day down again, moving closer to Monday’s lows. If we break those lows tomorrow then SPY is at risk of declining towards 428.00 and 426.00. Apart from large caps declining rapidly, small cap and penny stock markets are still providing plenty of opportunities, but are requiring a bit of a more strategic and modest approach.