S&P 500 Price Forecast – Stock markets looking for direction ahead of Fed

The S&P 500 fell a bit during the trading session on Wednesday as we awaited the FOMC statement, but at this point there are several levels that we should be watching on the daily close in order to take advantage of the next move and the trend.
Christopher Lewis
S&P 500 daily chart, September 19, 2019

The S&P 500 has pulled back a bit during the trading session on Wednesday as we await the FOMC statement and decision, so having said that it’s likely that the market may test the couple of major levels in the process of banging around. At this point it comes down to where the daily chart closes and directionality so that we can take advantage of the next big move. At this point, if the market was to break above the highs from earlier this summer at the 3030 level, then the S&P 500 continues to go much higher. This will more than likely be due to an accommodative Federal Reserve.

S&P 500 Video 19.09.19

On the other hand, we could break down below the 2980 handle on the daily close, perhaps sending the market down to the 2900 level, and then perhaps down to the 2850 level, perhaps being supported by being so close to the 200 day EMA. Ultimately, this is a market that looks as if it is trying to form some type of impulsive move to the upside but it’s going to come down to how the stock market reacts to the Federal Reserve. Beyond that, we should pay attention to the daily close, because there will be enough noise during the day to make trading this very difficult until everybody goes home from Wall Street. Once they do, the intentions of the longer-term move should be known and therefore taken advantage of.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.