S&P 500 Price Forecast – stock markets continue to stall

The S&P 500 has done very little during the trading session on Tuesday as we await the FOMC results for the Wednesday session. I think at this point we are simply biding our time trying to figure out where were going to go next. The 2600 level underneath is massive support, and I think that the 20 day EMA sitting right there helps as well. However, I see a significant amount of resistance at the 2700 level, and if we can break above there then we can go much higher. I do believe that ultimately the stock markets want to go higher but they need the Federal Reserve to get out of the way in order to do so.

S&P 500 Video 30.01.19

It has been noted as of late that the Federal Reserve is being held hostage by the markets, and I do think they will give the markets what they want. Given enough time, I fully anticipate to see the Federal Reserve soften its stance, or at the very least it’s language so that the markets can rally. If they don’t, we will see a massive selloff and perhaps a retest of the lows. I think right now though, we are essentially stuck in a 100 point range. Looking at this chart, I think that it is essentially a 50-50 chance right now, so I would be cautious about putting a lot of money to work. However, if you are a short term trader you may be able to take advantage of back and forth short-term range bound systems.