Stock Markets Continue to Move on Geopolitical Concerns

The S&P 500 has shown itself to be sensitive to the Russia/Ukraine border issue, which should not be a huge surprise, because quite frankly you have a situation where nobody really knows what is going to happen next. That being said, this is more or less just theater in a market that has been trying to find its way for a while. Because of this, I think we are simply testing the 200 day EMA and potential support to see what happens next. While the Russia/Ukraine situation can cause major issues, the reality is that the S&P 500 was slumping before then.

S&P 500 Video 18.02.22

Earnings season is upon us, and that of course can have a major influence on how we behave but I think at the end of the day we are simply trying to figure out what to do with the overall global economy. Tightening monetary policy certainly works against stocks, but the market has priced in such a massive move that I think a lot of people are starting to question whether or not it can really happen.

Because of this, there is the possibility of a bit of a “snapback rally”, but I would not count on it. The 4600 level above needs to be overcome to prove that the market is in fact going to try to remain bullish for the longer term, while breaking down below the 4200 level would open up the floodgates for much more selling.

For a look at all of today’s economic events, check out our economic calendar.