S&P 500 and NASDAQ 100 Price Forecast – stock markets await Federal Reserve attitude

S&P 500

The S&P 500 rallied a bit going into the decision and more importantly the statement. I think at this point; the market will probably rally in the short term if the Federal Reserve sounds a bit more dovish. However, I think that sets up a perfect selling opportunity closer to the 2650 level, perhaps the 2700 level, assuming we even get to that point. This is because of the sound more dovish, then you have to worry about whether or not the economy is truly getting worse. According to FedEx, it is.

S&P 500 Video 20.12.18

NASDAQ 100

The NASDAQ 100 of course continues to struggle because of the trade war, but we did bounce enough to test the top of the candle stick from the previous session. That’s a good sign, but I think that the 50 EMA above will cause significant resistance, and if we break down to a fresh new low, then we probably go even lower, perhaps down to the 6250 handle. I think at this point it’s likely that the rallies will be met with skepticism, as quite frankly they should. At this point, I think that it’s not until we break above the 50 day EMA that you can start to think about a turnaround in the overall attitude. I think we are going lower, the question is whether or not we do it at the end of the day, or if we do it after a rally? Look at the rally that show signs of failure as a gift to start shorting.