S&P 500 Price Forecast March 20, 2018, Technical Analysis

The S&P 500 has broken down significantly during the trading session on Monday, reaching towards the 2700 level. That’s an area that should be supportive as it is a large, round, psychologically significant number, but we have dipped below there before. Because of this, it’s possible that we may continue to go much lower, perhaps reaching towards 2650, and then perhaps even as low as 2600 after that.

S&P 500 Video 20.03.18

The Federal Reserve is going to have a meeting this week, and the statement will be parsed by traders around the world, trying to get an idea as to where things are going next. I believe that if we get a hockey statement suggesting that there are going to be for interest rate hikes this year, that will be negative for stocks. However, if it sounds more like we are going to get 3, well that’s already known, and that should bring some stability back to the marketplace. The next couple of sessions will probably be very choppy until we get that statement, so be very careful about trading this market. Longer-term, I am still bullish but recognize that the selloff could be brutal if the Federal Reserve seems to be ready to step on the brakes significantly. At this point, I still have a longer-term target of 3000, but obviously we have some work to do. That could change this week though, so stay tuned here at FX Empire.