S&P 500 Price Forecast – Stock markets continue to await signal

The S&P 500 has pulled back a bit during the trading session on Tuesday, but it does look as if there is plenty of support below. Beyond that, there’s also a gap near the 2950 level that I would be paying attention to as gaps do tend to get filled. With Jerome Powell testifying in front of the United States Congress this week, people are waiting to see just how accommodative the United States central bank will be. With the Federal Reserve looking likely to cut rates, the question now is whether or not it’s going to be 25 or 50 basis points. I suspect that it’s only 25 basis points, but at this point it looks like the only thing the market cares about is that easy money continues to flow.

S&P 500 Video 10.07.19

If we were to break down below the gap near the 2950 level, then we could go down to the 2900 level, which is where the 50 day EMA is currently sitting at. Ultimately, that would be an excellent pullback that could offer plenty of value but I don’t know that it’s going to happen anytime soon. Quite frankly, I believe that the testimony by Jerome Powell will be the biggest catalyst to finally throw this market above the 3000 handle decisively.

That being said, I do believe that we are looking at the possibility of value hunting underneath, so I do prefer pullbacks, but the reality is that we may or may not get that as so many variables can come from a speech like the one we are about to hear.

Please let us know what you think in the comments below