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S&P 500 Price Forecast – Stock markets looking for direction ahead of Fed

Christopher Lewis

The S&P 500 has pulled back a bit during the trading session on Wednesday as we await the FOMC statement and decision, so having said that it’s likely that the market may test the couple of major levels in the process of banging around. At this point it comes down to where the daily chart closes and directionality so that we can take advantage of the next big move. At this point, if the market was to break above the highs from earlier this summer at the 3030 level, then the S&P 500 continues to go much higher. This will more than likely be due to an accommodative Federal Reserve.

S&P 500 Video 19.09.19

On the other hand, we could break down below the 2980 handle on the daily close, perhaps sending the market down to the 2900 level, and then perhaps down to the 2850 level, perhaps being supported by being so close to the 200 day EMA. Ultimately, this is a market that looks as if it is trying to form some type of impulsive move to the upside but it’s going to come down to how the stock market reacts to the Federal Reserve. Beyond that, we should pay attention to the daily close, because there will be enough noise during the day to make trading this very difficult until everybody goes home from Wall Street. Once they do, the intentions of the longer-term move should be known and therefore taken advantage of.

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This article was originally posted on FX Empire