S&P 500 Price Forecast – Stock markets rally in hopes of stimulus

The S&P 500 rallied rather significantly during the trading session, slicing through the 2900 level rather easily. By doing so, it shows that there is a significant amount of hope for stimulus coming out of the Federal Reserve on Wednesday, so it’s likely that what we will see next is more choppiness, but we should have our answers after the statement. It comes out at 2 o’clock in the afternoon New York time, and will be one of the biggest movers of markets going forward.

S&P 500 Video 19.06.19

Just above here we have the 2950 level offering a significant amount of resistance, so breaking above there would of course be a major turn of events. I believe that ultimately we are looking at a scenario where we will break through there, based upon the ferocity of this move. Perhaps traders are betting that the Federal Reserve will have to be just as dovish as the ECB, as the Europeans may have forced their hand.

The 2900 level underneath should be support, so as long as we can stay reasonably above or in that range, it’s very likely that we are going to see a buying opportunity. It’s not until we break down below the candle stick from last Thursday that I would become concerned. I still believe that the 3000 level will be targeted by longer-term traders, so therefore it’s likely to be a situation where we continue to see a lot of buying power show up on dips as they occur. I have no interest in selling, at least not yet.

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