S&P 500 Price Forecast – Wall Street Celebrates After Fed

S&P 500 Technical Analysis

The S&P 500 rose during afterhours trading, and as we head into the cash session, it certainly looks as if market participants are going to continue the upward momentum that they had seen from the previous day. The Federal Reserve decision has come and gone, and of course, they reiterated their desire to cut rates three times this year.

They did absolutely nothing whatsoever to try and persuade Wall Street otherwise and therefore we have a lot of celebratory buying. This is a market that has been very bullish for a while so this really shouldn’t be much of a surprise and quite frankly, I think it’s probably only a matter of time before we truly take off to the upside and go look into the 5500 level.

There is a floor in the market at the 5,000 level, and I don’t even think we get anywhere near there. Given enough time, I do think that each dip will be bought into it as it offers a bit of value that you can take advantage of in what is almost certainly a FOMO market. That being said, I am looking for signs of value on these dips, and occasionally we may get a hiccup. But it looks to me, like in the short term at least, that the FOMO trading is back with a vengeance. Ultimately, this probably ends poorly, but when that happens, nobody knows, and these momentum driven rallies almost certainly last much longer than anyone ever expect, hence the phrase “the markets can stay irrational much longer than you can stay liquid.”

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