SPY Stock Today: Tariff Jitters, Tom Lee Warning on January 21
SPY stock whipsawed on January 21 as tariff concerns tied to reports on Trump’s Greenland and EU stance shook sentiment. Canadian investors saw the S&P 500 ETF rally on headlines, then fade as sellers returned. A Tom Lee forecast for a near-term pullback, driven by a Fed transition and AI repricing, added caution. We explain what moved the tape, what signals matter next, and how Canadian portfolios can respond without overreacting. All prices are in USD unless noted.
Tariff jitters whip markets
Selling pressure followed fresh tariff chatter tied to Greenland resources and EU goods, keeping buyers on the back foot. Intraday bounces faded as headlines resurfaced and breadth weakened. Live updates highlighted the rotation out of cyclicals and tech softness. See recap: Stock Market Live January 21, 2026: S&P 500 (SPY) Still Sinking on Tariff Concerns.
Early strength in broad ETFs turned into lower highs, a classic sign of fragile risk appetite. Liquidity felt thin around headline drops, with sellers testing prior support zones. For SPY stock, failed intraday breakouts suggested patience was the better plan. Into the close, defensives held up better while high beta areas lagged, reinforcing a risk-off tone.
Tom Lee forecast: near-term pain, later gain
Tom Lee warned of a near-term S&P 500 pullback as the market digests a Fed leadership transition, AI repricing, and weak technicals. The setup implies choppy action before a potential recovery later in 2026. Details here: Here’s Why the SPY and VOO ETF Stocks May Crash as Tom Lee Predicts.
We see scope for wider ranges and quick reversals. That favors smaller position sizes, dry powder, and clear buy zones. Avoid chasing gaps higher. Focus on quality balance sheets and steady cash flows. SPY stock remains the core S&P 500 ETF for exposure, but allocations can be staged to manage headline risk.
Key signals for SPY in this tape
Watch the 50-day and 200-day moving averages for trend confirmation and the slope of each line. Rising volatility typically widens ranges, so expect more tests of recent support. The fund’s income yield near 1.06% offers limited downside cushion, so timing entries and respecting stops matter more in headline-driven tape.
Leadership concentration can strain rallies. Track equal-weight versus market-cap S&P 500, sector breadth, and the health of semis and software. Persistent negative breadth often precedes deeper pullbacks. If leadership broadens and new highs expand, conviction improves. If mega-caps rally alone while breadth erodes, be cautious with new SPY stock adds.
What Canadian investors can do now
Tariff concerns can lift USD in risk-off periods, pressuring CAD. Decide if CAD-hedged S&P 500 ETF exposure fits your plan. Hedged products reduce currency swings, while unhedged can benefit when USD rises. Align the choice with your spending currency, time horizon, and your comfort with added FX volatility.
Use staged buys to average into weakness, not all at once. Predefine support levels and risk per trade. Consider trimming crowded winners, rotate toward quality, and keep a cash buffer for dislocations. For core exposure, add to SPY stock on decisive retests that hold, and avoid leverage during headline spikes.
Final Thoughts
Tariff concerns and a cautious Tom Lee forecast created a noisy session, with rallies failing and defensives working better. For Canadian investors, this is a time to slow down, not stand still. Keep core S&P 500 ETF exposure, but scale in with smaller adds and clear risk limits. Watch the 50-day and 200-day averages, market breadth, and sector leadership for confirmation. Consider whether CAD hedging fits your needs, since FX can swing during risk-off days. If breadth improves and sellers fail to break support, we would add gradually to SPY stock. If leadership narrows and support cracks, we would wait for stronger signals. Discipline and patience should guide every move.
FAQs
Why did SPY stock swing so much on January 21?
Tariff concerns tied to reports about Greenland and EU goods hit risk appetite, producing quick shifts between buying and selling. Intraday rebounds failed as fresh headlines crossed. Liquidity looked thin around drops, and breadth weakened, so rallies did not stick. The tape favored patience over chasing strength.
What is Tom Lee’s forecast telling SPY stock investors?
Tom Lee flagged a near-term S&P 500 drawdown as the market digests a Fed leadership transition, AI repricing, and weak technicals. He sees a better setup later in 2026. For investors, this suggests smaller positions, staged entries, and tighter risk controls while waiting for stronger breadth.
Should Canadians hedge S&P 500 ETF exposure when tariff concerns rise?
Hedging reduces currency swings, which helps if USD weakens. Unhedged exposure can help when USD rises in risk-off periods. Choose based on your spending currency, time horizon, and risk tolerance. A mix can work, pairing core unhedged with some CAD-hedged exposure for balance during volatile stretches.
Is now a buy for SPY stock or is it better to wait?
We would avoid chasing strength after headline spikes. Scale in on decisive support holds and improving breadth. If leadership broadens and sellers fail to break key averages, add gradually. If breadth deteriorates and support cracks, keep cash ready and wait for better risk‑reward setups.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
