S&P 500 Price Forecast – stock markets waiting for a bigger move

The S&P 500 has rallied slightly during the trading session on Wednesday as we await the Federal Reserve press conference. The downtrend line that I have drawn on the chart is somewhat important, but I do think that the biggest thing coming into play in this market right now is the moving averages underneath offering support, and of course the idea of consolidation. If we can break above the 2700 level, the market could go much higher, reaching towards the 2800 level. Obviously, there is the alternate scenario, such as if we break down below the 2600 level. We do, then the market probably goes down to the 2500 level.

S&P 500 Video 31.01.19

Overall, I think once we get some type of impulsive daily candle stick that either breaks above the 2700 level, or below the 2600 level, we can then start to follow the market and go much higher. In general, I do think that being in the middle of earnings season has a lot to do with why things are so difficult to trade, and then on top of that we have the jobs number coming out on Friday.

Ultimately, I think we are at a major inflection point, it will be interesting to see this plays out. By waiting on a daily close, you can assure yourself that the market will prove itself in intention to you and, which of course is probably the best thing that you can ask for in this type of trading environment.