S&P 500 Price Forecast – Stock Markets Pulled Back Waiting the Federal Reserve Meeting

US Stock Market Forecast Video for 03.05.23

S&P 500 Technical Analysis

The S&P 500 has initially rallied on Tuesday, as the market braces for the Federal Reserve meeting on Wednesday. At this point, there are a lot of concerns about what the Federal Reserve will do, and whether or not they will truly stay hawkish. If they do, it could cause a lot of problems for the stock market, due to the fact that the Wall Street traders believe that the road to higher stock prices leads through liquidity and cheap money.

At this point, the 50-Day EMA currently resides at the 4100 region, so it should offer a little bit of a support level. Ultimately, I think this is a market that remains more or less “buy on the dips” unless of course the Federal Reserve nukes the market. I don’t necessarily think that will be the case, because the Federal Reserve seems to favor playing both sides of the fence when it comes to market behavior. After all, one of the biggest problems with Federal Reserve meetings and statements is the fact that they seem to be very indecisive at times, and this does cause a major amount of problems.

If we were to break below the 4100 level, then it could open up and move down to the 4000 level, but at this point we are still very much in the same consolidation range we have been in for a while. I think at this point in time it does make a certain amount of sense that we would hang around in this area, but at this point in time I do think that we are building up enough momentum to eventually break in one direction or the other. As soon as we break out of this 100 point range, I believe that we the go 100 points higher to the 4300 level, or 100 points lower to the 4000 area. In the meantime, I would expect a lot of volatility because both the Federal Reserve and the European Central Bank meetings over the next 2 days will cause noise, and then of course we cannot forget the Friday Non-Farm Payroll announcement.

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