S&P 500 Price Forecast – S&P 500 Continues to Wait For Jerome Powell

S&P 500 Technical Analysis

The S&P 500 pulled back just a bit in the early hours on Tuesday, as we continue to consolidate. Quite frankly, this is a market that is bullish, and I don’t want to go short, but I also recognize that there’s a really good chance that perhaps we don’t do much until after the FOMC press conference at the end of the day on Wednesday.

After then, the Wall Street traders will probably have a better outlook on what the Federal Reserve may or may not do. And with that being the case, I think you have a situation where traders are going to look underneath for support on any pullback, with the 5300 level being an obvious spot, and of course the 50-day EMA, which is right at the 5,225 level and rising.

I think given enough time, we’d probably go looking to the 5500 level, but I also recognize that it is going to take a certain amount of effort to get up there. A lot of patience will be needed in order to ride this market up to that level, assuming we get there that is.

I think at this point you’re better off looking for value on these dips. The market is most certainly in an uptrend and that doesn’t change anytime soon, so there’s no point in trying to look for shorting opportunities unless something drastically changes. The market is stretched, but quite frankly these days the market gets stretched quite a bit, and it seems that “being oversold” is a common theme at times.

For a look at all of today’s economic events, check out our economic calendar.