S&P 500 Price Forecast – S&P 500 traders continue to find support following FOMC

The S&P 500 drifted lower a little bit during the trading session on Wednesday, but found support at the crucial 2920 level again, an area that has been supportive more than once. There is an uptrend line just below, and that continues to offer pressure to the upside. I think at this point, if we pull back it’s likely that value hunters will return to this market. Once the FOMC statement comes out, it’s likely that we will see a lot of volatility. Once that comes down we should have the “all clear” to continue to go higher.

If we break down below the uptrend line on a daily close, that could lead to much more negativity, perhaps  reaching down towards the 2900 level. However, my base case scenario is that the buyers continue to jump into this market, and then push towards the 2950 handle again. Longer-term, I believe that it is only a matter time before we reach to the 3000 handle. Overall, I think that the market remains relatively resilient in the face of great adversity, which of course is always a very strong sign. Again, I would not be a seller until we break down below the downtrend line on a daily close, as it would show a relatively negative reaction to the statement. Overall though, I think that the market has proven itself to favor the upside.

S&P 500 Video 27.09.18