S&P 500 Price Forecast – Stock Markets Likely to See Chop Ahead of the FOMC

US Stock Market Forecast Video for 22.03.23

S&P 500 Technical Analysis

The S&P 500 has rallied a bit during the trading session on Tuesday to break above the 50-Day EMA as well as the 200-Day EMA indicators. At this point, the market has broken above the 4000 level in the futures market, and that suggested perhaps we have a situation where we will attempt to rally toward the FOMC meeting, but there is plenty of resistance all the way up to the 4100 level on shorter-term charts.

You have to keep in mind that the moving averages of course attract a lot of attention, so therefore it does make quite a bit of sense that we would see hesitation. Furthermore, the moving averages are flat, so that also means that the market is more or less in a neutral stance. This does make sense, because Jerome Powell will have a statement Wednesday afternoon in America that will have a major influence on where the market goes next. After all, a lot of people are hoping for some type of reprieve as far as interest rate hikes are concerned, while others believe that the Federal Reserve may raise as much as 50 basis points. The consensus at the moment is for 25 basis points, but it’s also the statement that people will be paying close attention to, because it gives an idea as to where the future direction of the Federal Reserve may lie.

The 3900 level should be significant support, just as the 4100 level above should be significant resistance. It’s probably best to leave the market alone until after the announcement and the reaction, because it’s possible that this could be a huge day just waiting to happen. As things stand right now, it appears that somewhere around the 4000 level seems to be a bit of a magnet for prices, but I suspect that probably changes quite rapidly by the time we get to Thursday morning trading. Keep your position size reasonable, it’s probably the only thing you can do if you choose to trade this market as far as keeping your trading account protected.

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