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 $400.
What about gaps down below? Well, they will have to wait for now.
Definitely do not take any of my posts as a trading advice but hopefully you find them somewhat useful.
I really like this one. I will be keeping an eye on SPY
gvmrb0040
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even if no stimulus market knows atleast 900B will go thru after Biden is sworn(shortly) . There is also the thing dems may do lot more shortly here after they pass 2000$ check stimulus Monday... i just cant see any selloff like that even if stimulus is delayed. At best a garden variety 80 point ar beat...Anyways trump will sign soon i think
@bossmodetrader don’t forget Georgia elections! All Democrats are dirty socialists and want your hard earned investment dollars. Them taxes will probably cause a fit! Happy holidays everyone!
bossmodetrader
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@horacejunior, thats right! Forgot about that one. Should be added as #9 on the catalyst list. Happy Holidays!