S&P 500 Price Forecast – Stock Markets Continue to Show Support

The S&P 500 has found itself on the defensive most of the trading session for early Wednesday, breaking through the 3800 level as the world awaited the FOMC. That being said, the market is still very much in an uptrend and it is worth noting that the buyers came back into supported. The question now is whether or not they can continue to do so, and of course what affect the FOMC statement and perhaps more importantly the press conference will have on risk appetite around the world.

S&P 500 Video 28.01.21

Regardless, I think there is plenty of support underneath and clearly Wall Street has been trained to understand that the Federal Reserve will come in and bail out Wall Street if they get into too much trouble. With that in mind, I think that the 50 day EMA underneath and the uptrend line both offer particularly interesting opportunities to get short of this market, as we have clearly been in an uptrend and every time it looks like the markets going to pull apart there is a reason or a new narrative to get people long again. I suspect that Jerome Powell will do everything he can to support this market going forward, so the concerns about a problem with the press conference are probably overblown at best.

To the upside I believe that we are still going to go looking towards the 4000 level, but it is going to take some time to get there. In fact, I have no concern about this market at all until we break down below the 3600 level, an area that we are clearly miles away from right now.

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