S&P 500 Price Forecast – Stock markets continue to hover

The stock markets continue to hover at relatively high levels awaiting the FOMC Meeting Statement on Wednesday. We are at extreme highs, but quite frankly this is a market that looks like it wants to go higher.
Christopher Lewis
S&P 500 daily chart, June 18, 2019

The S&P 500 is simply waiting to see what the FOMC Statement is. At this point, the market looks very likely to see a lot of noise and a lot of concern, but quite frankly I think that the easiest route to take is to start buying when it dips. After all, the market has gapped higher early last week, fill that gap, and continued higher. Overall though, it’s very difficult to imagine a scenario where we simply just take off. Quite frankly at this point we need the Federal Reserve to step in and help.

S&P 500 Video 18.06.19

As we await the statement on Wednesday, it is very unlikely that we see a shot higher, but as soon as we get that statement, it’s very likely that we should continue to see bullish pressure if the Federal Reserve sounds dovish at all. A rate cut doesn’t seem very likely, but at this point in time the market will want to see hints that the market is going to get that rate cut. If we do get that news, the market probably reaches towards the 2950 handle, possibly even the 3000 level after that.

To the downside, the 50 day EMA should offer plenty of support, near the 2852 handle. Quite frankly, we are also forming a bit of the flag, which is also bullish. That doesn’t mean we take off right away, but I do believe that the buyers are essentially in control at this point in time so I’m not necessarily interested in shorting unless of course the Federal Reserve shocks the market.

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