S&P 500 Price Forecast – Stock Markets Await FOMC

The Federal Open Market Committee will have its announcement on Wednesday, along with the press conference by Jerome Powell. That being the case, a lot of traders are simply waiting to see what happens with that press conference before putting a lot of money to work in a market that is already at all-time highs. The S&P 500 certainly looks bullish, and if we get some type of major pull back, I suspect that there should be plenty of buyers looking to get involved. There is a massive uptrend that has been going on for years, and the 50 day EMA has now crossed above the most recent uptrend line.

S&P 500 Video 27.01.21

Ultimately, when you look at the longer-term chart you can see that we have been consolidating between the 3200 level on the bottom and the 3600 level on the top and have broken from that rectangle. The extrapolated move based upon the measurement suggests that this market could go to the 4000 level, and there is nothing on this chart to dissuade me from believing that. This does not necessarily mean that has to happen in a straight line, and there could be a lot of drama between now and then.

Nonetheless, I fully anticipate seeing the S&P 500 at the 4000 level sometime this year, although I do not necessarily know if we are going to shoot straight up in the air like we did last year. Buying dips continues to be the preferred trade, especially if we get some type of sudden shock after the FOMC, as the Federal Reserve has a long history of walking back any hawkishness when Wall Street throws a tantrum.

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