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S&P 500 Price Forecast – Stock markets await clarity from the Federal Reserve

By:
Christopher Lewis
Updated: May 1, 2019, 16:27 UTC

Stock markets did very little earlier in the trading session on Wednesday, as we await to see what the Federal Reserve has the same. Overall, the market is very bullish, so unless the Federal Reserve comes out extraordinarily hawkish, it’s very likely that we will eventually break out again.

S&P 500 daily chart, May 02, 2019

The S&P 500 tried to rally initially during overnight trading in the E-mini session, but the market has pared some of the gains. However, it’s difficult to imagine a scenario where Federal Reserve will come out and smash this market, so it’s very likely that we will continue to find buyers. This is a market that continues to show resiliency, so even though we have pulled back initially during the trading session, it’s very likely that we are going to find plenty of support. After all, all you need to do is look at the Tuesday candle to see just how willing buyers are to step into this market and begin to take a shot at picking up a bit of value.

S&P 500 Video 02.05.19

In fact, I believe that as long as we can stay above the 2890 handle, pullbacks should represent value the people are willing to take advantage of. I have no interest in shorting the market until we break down through that level at the very least, and truthfully it’s probably going to take even more than that. It’s obvious that this is a bullish market and it is hard to kill a bull. After all, the markets can continue to levitate much longer than you anticipate. As far as selling this market is concerned, we are going to need to see a major shift in attitude. Granted, the Federal Reserve could be that problem, but it seems very unlikely they are willing to risk another meltdown.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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