S&P 500 Price Forecast – S&P 500 Markets Sit Still Ahead of FOMC Meeting

US Stock Market Forecast Video for 23.03.23

S&P 500 Technical Analysis

The S&P 500 has pulled back ever so slightly during the trading session on Wednesday but has only done so in the vein of a market that is seen people take profits. After all, the less you want to do is have a huge position on when the FOMC meeting happens, as there are still a lot of questions as to what Jerome Powell and company will do. There will be a lot of questions about the interest rate hike, as it’s going to either be 25 basis points or even 50. So far, Jerome Powell has been steadfast in his argument for tight monetary policy to fight inflation, but we have since had a banking crisis of sorts, and therefore it will be interesting to see whether or not the Fed continues to fight inflation or acquiesces.

The 200-Day EMA’s is just above the 4000 level, an area that of course has a large, round, psychologically significant figure, and an area where we’ve seen quite a bit of action in the past, so it would not be surprising at all to see buyers step into this market if we do pull back from here. Breaking down below that level could open up a move down to the 3900 level, an area that is recently offered support, followed by the 3800 level. That being said, to the upside the 4100 level looks very difficult.

If we can break above the 4100 level, then it opens up the possibility of an even bigger move, but we also have to keep in mind that it’s difficult to see a situation where the market suddenly takes off unless of course the Federal Reserve gives Wall Street what it wants, which of course is cheap money. As things stand right now, the market looks as if it is still trading in some type of larger consolidation area, as volatility picks up and of course choppiness continues as a result. I think that’s going to be the way going forward, but there is the possibility that we finally see some type of clarity out of the Fed by the end of the day. Until then, this choppy back-and-forth behavior will continue.

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