S&P 500 Price Forecast – Stock Markets Recover

The S&P 500 rallied a bit during the trading session on Tuesday, bouncing from the bottom of the uptrend and channel that we have been in for some time. At this point, the market looks likely to continue to try to grind towards the 3300 level, reaching the top of the gap and that is a sign of strength. If we can clear that gap, then this market should continue to go much higher, grinding towards the all-time highs. Quite frankly, even if we break down from here it’s likely that we will see support near the 3200 level as it is not only a large, round, psychologically significant figure, but it is also an area where we have seen support at previously. Furthermore, the 50 day EMA is in that general vicinity, so all things being equal, it’s likely that we see some type of bounce from that area as well.

S&P 500 Video 29.01.20

The Wednesday session features the FOMC Statement, and that of course will have a massive influence on what stock markets do next. Overall, I do believe that the buyers will continue to push this market higher, but clearly, we need to get through the announcement in order to build the necessary confidence to break out. That being said, we could get a dovish enough statement coming out of the Federal Reserve to have people jumping into the stock market yet again. If we break down below the 3200 level, then I will reevaluate the entire situation, but with an eye on the 3100 level and the 200 day EMA underneath there.

Please let us know what you think in the comments below