S&P 500 Price Forecast – Stock markets pulled back ahead of Fed

The S&P 500 pulled back a bit during the trading session on Wednesday, breaking down below the bottom of the shooting star from Tuesday. Ultimately, this is a market that should continue to churn ahead of that announcement.
Christopher Lewis
S&P 500 daily chart, March 21, 2019

The S&P 500 pulled back a bit in early trading on Wednesday, as we are awaiting the announcement coming out of the Federal Reserve. As traders continue to wonder about the future direction of the Federal Reserve, this will have a major influence on markets overall, as we continue to see questions as to liquidity. We have recently seen a major high, but this pullback should be thought of as a buying opportunity unless of course we have some type of shock coming out of the Federal Reserve.

S&P 500 Video 21.03.19

The 2800 level underneath should be supportive, and so should the 50 day EMA which is at roughly 2750. Quite frankly, the Federal Reserve has proven that it is going to give into the whims of Wall Street, so it’s hard to imagine that we are going to see a hawkish Federal Reserve blowing up the stock market. At this point, any time we did from here is more than likely going to be thought of as a buying opportunity as we grind our way towards the 2900 level above which is massive resistance. Longer-term, we could go as high as 3000 but we obviously have some work to do on the way. There are always going to be headlines out there to scare the market, but the trend is still very much to the upside and there’s no point in trying to fight that. I have no interest whatsoever in shorting the S&P 500 for any real length of time.

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.