S&P 500 Price Forecast – will the Fed continue to lift markets?

The only question at this point in time is whether or not the Federal Reserve is going to be dovish enough to continue to lift the stock markets in America. Let me clue you in here a bit: The Federal Reserve works for Wall Street essentially, so at this point it’s very hard to imagine a scenario where they don’t cut interest rates, and of course continue to do so.
Christopher Lewis
S&P 500 daily chart, August 01, 2019

The S&P 500 has been trading water on Wednesday ahead of the interest rate decision and more importantly the statement. I think at this point it’s very obvious that the market should continue to go higher, with the 3000 level being a very important support barrier. Ultimately, I think that the market will continue to find plenty of value hunters on dips anyway, extending all the way down to the 2950 level which also coincides nicely with the 50 day EMA. Overall though, it’s very unlikely we even get that far as the Federal Reserve will not only cut interest rates, but it will also indicate that more interest rate cuts are coming.

S&P 500 Video 01.08.19

Any dip at this point should be thought of as value as long as we can stay above the 50 day EMA. If we were to break down below that level, it’s likely that we could go down to the 2900 level, perhaps even the 200 day EMA level after that. This is an uptrend, and the Federal Reserve is knocking to do anything to risk that. They were taught a valuable lesson last winter when they got the flash crash by trying to wean Wall Street off of its “monetary methadone.” At this point, it’s obvious that the buyers should get everything they want eventually.

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