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S&P 500 Price Forecast – Stock markets await the Fed

Stock markets are essentially in a holding pattern during the trading session on Tuesday, as we await the Federal Reserve interest rate decision on Wednesday. Beyond that, it’s actually the statement that people will be paying the most attention to, as the forward outlook for interest rates drives where the stock market goes.
Christopher Lewis
S&P 500 daily chart, September 18, 2019

The S&P 500 has essentially sat still during the trading session on Tuesday as we await the Federal Reserve on Wednesday. There’s an interest rate announcement and of course a statement afterwards that will greatly influence where the market goes next. Simply put, if the Federal Reserve is extraordinarily dovish sounding, then the S&P 500 should go higher. All things been equal this is a market that does continue to see a lot of interest as the interest rate situation out there just is anemic to say the least. Beyond that, the other stock markets around the world continue to underperform the S&P 500 anyway, so it makes sense that people are looking towards the United States to invest.

S&P 500 Video 18.09.19

The 3030 high above is going to be difficult to break through, but the Federal Reserve might be the one thing that can make it happen. If the sound dovish enough than the S&P 500 will shoot through the roof. Otherwise, we will probably pull back to the 2980 handle, and then perhaps even down to the 50 day EMA which is closer to the 2950 handle. All things being equal, the measured move from the previous consolidation area that would be a wet sent us higher signals that we should be going to the 3100 level. I still believe in that, but it’s obviously going to be very choppy in the process. The Federal Reserve will more than likely do what it can to make it happen.

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