S&P 500 Price Forecast – Stock Markets Undulate Heading Towards FOMC
The S&P 500 has rallied a bit during the course of the trading session on Wednesday to reach towards the previous uptrend line, which is an area that will of course offer a lot of attention to this market. The 50 day EMA is starting to slope lower and is sitting just above the uptrend line. With that being the case, the market is showing signs of recovery, but we need to get a daily close above the 50 day EMA in order to get a move to the upside really going.
S&P 500 Video 23.09.21
There is a huge amount of interest in the Wednesday FOMC statement, but quite frankly it is very unlikely that the Federal Reserve will do anything of consequence. That being the case, then it is very interesting to see that we are sitting in an area that could lead to lower pricing, but right now we are slowly grinding in order to make a bigger move. We need to see some type of an impulsive candlestick either below the Monday candlestick or above the 50 day EMA to put money to work.
If we do break down, I would be a buyer of puts but I would not short this market as I believe the 200 day EMA would then come into the picture. All things been equal, this is a market that has desperately needed some type of pullback so at the end of the day is still going to be very helpful. The market cannot go in one direction forever, and I think that is what we are starting to see at this point in time.
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