S&P 500 Price Forecast – Stock Markets Await Chairman Powell

The S&P 500 has rallied just a bit during the trading session on Tuesday as we await the FOMC meeting results on Wednesday. Obviously, one of the things that we will have to pay close attention to is whether or not the Federal Reserve is going to do anything about bond yields. They have spiked as of late and that has most certainly caused some issues. With that being the case, then we have seen the US dollar move back and forth. Quite frankly, I would not expect much between now and the end of the day on Wednesday, as we will be in a “wait and see” pattern.

S&P 500 Video 17.03.21

If the Federal Reserve does not do anything or at least state that is willing to do something about bond yields, that could be very negative for the market, at least short term. Jerome Powell has taught us over the years that he may not do anything tomorrow, but if Wall Street throws a big enough tantrum, he will certainly come to the rescue. With that in mind, if we do get some type of selloff on Wednesday, it should be thought of as a potential buying opportunity in the next few days. I still have no interest in shorting this market, because quite frankly that has been a loser’s bed for most of the last 13 years. On the other hand, if he does say or do something about bond yields, it is very likely that the stock market will break the 4000 level on Wednesday.

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