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

The S&P 500 did very little during the day on Monday as we continue to grind around all-time highs. The market has recently cleared the 3000 level and seems to be relatively comfortable with that region. If that’s going to be the case it does suggest higher pricing in the future. However, we have to get past the Federal Reserve and its interest rate decision and that of course is paramount and front and center for traders right now.

S&P 500 Video 30.07.19

A move below the 3000 level would be negative, perhaps sending the market down towards the 2975 handle, and then possibly the 2950 level after that. At this point, the 2950 level should be considered to be the “floor”, as if there is a gap there, and of course the 50 day EMA. Any signs of support after a pullback should be a nice buying opportunity, just as a break to a fresh, new high should also send this market to the upside. All things being equal, this is all about the Federal Reserve and whether or not they are going to cut rates, perhaps even sound dovish for the future as well.

Ultimately, this is a market that should go looking towards the 3050 level given enough time, but we need to know that the Federal Reserve is willing to step in and support the market when it pulls back.

Please let us know what you think in the comments below