S&P 500 Price Forecast – Stocks Get Hammered Ahead of Fed Meeting

The S&P 500 has pulled back a bit during the course of the trading session on Tuesday, as we are reaching towards the 50 day EMA and the S&P 500 E-mini contract. This point time suggests that perhaps people are worried as to what Jerome Powell may or may not do after the Federal Reserve meeting. There is talk of the Federal Reserve being forced into a quicker tapering than originally thought, but at this point in time it is a bit early to make that bet. After all, inflation is something that suddenly has gained a lot of attention, and even Jerome Powell got rid of the word “transitory” in the most recent congressional testimony.

S&P 500 Video 15.12.21

With this being said, the 50 day EMA is sitting at the 4600 level, and then of course we have the psychologically important 4500 level underneath there that could come into the picture. I do believe at this point in time we will more than likely see plenty of people concerned, but keep in mind that everything could change with just a few choice words after the meeting by Jerome Powell. If the suggests that perhaps they are not going to speed up tapering, the market will turn around a rip to the upside. In other words, I would not read too much into this candlestick and pretty much anything that happens between now and the end of the day on Wednesday as it is pure guesswork by traders more than anything else at this point in time.

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