January 2022 was not a good month for stock market. The market was down and a lot of sellings going on. Looking at SPY ETF prices from Nov 2021 to Jan 2022 (All prices are from Yahoo Finance):

Not only the prices went down, it has gone down below 20 day SMA, 50 day SMA, 100 day SMA and 200 day SMA very quickly within a few days. 200 day SMA is particularly important support level as it is usually used separate bull and bear market. This is particularly worrying if we looked back last 3 months, when prices only tested 100 day SMA and it gave quite good support. Luckily with last two trading days pushes, SPY was able to push above 200 day SMA.

Looking at aggregated price changes at week to date (WTD), month to date (MTD) level:

January almost went down 10% towards the end of the month. The month would ended quite ugly if we didn’t have the big push ups on 28th and 31st. The month ended with about 6% down which is not that bad comparing to Dec when the market went up a little less than 6%.

Would now be the time to take profit or stop loss? Or it is a time to get into the market for a bargain price?

Last modified on 2022-02-05