SPY Correction

SPY monthly outlook. Uncertainty is building up very quickly this week and it's not stopping anytime soon. Next Monday will likely be another blood bath for many people.

I do believe this short squeeze event will die out in the next month. However, If GME/AMC lost hedge funds too much money, it could cause a systematic problem and a 40% crash is expected.

$340 is suggested by multiple indicators. The recovery timeframe is the extended SMA100 projection.

My interpretation, any price between $335-345 is a good entry for a 6-month long position. Now still a good time to add short.

Comment:

Monday may turn out to be just fine for the market as we finally see some cooling off from our friends from r/WSB.I am sure many are wondering whether this is the end of the correction. Looking at the volume, I am still keeping my expectation that further downside is present for the week mainly for 2 reasons.

Biden's relief bill is facing pressure from the GOP and may got delayed. Again, today's discussion in the White House might be inconclusive and the market hasn't shown the usual overreactions.

AAPL, MSFT, TSLA, AMZN... all reaching the fair prices and potential long-term buyers are getting in for some cheap tickets.

Just keep an eye on the volume.

Comment:

# The volume is not impressive, continue short on Tuesday.