Stock Markets Rally Waiting for Fed

The S&P 500 has rallied a bit during the trading session on Wednesday in anticipation of the Federal Reserve statement. Ultimately, it looks as if buyers are trying to bet on a rally based upon a peace agreement in Ukraine being possible, as they continue to talk it out. However, we are not at this point ready to call and into the war, so that is yet another narrative to get stock traders excited. That being said, we are also getting ready to form the so-called “death cross”, so be interesting to see if that plays out.

S&P 500 Video 17.03.22

When you look at this chart, we are still very much in a downtrend, so it would not surprise me at all to see this market go looking towards the 4200 level. That being said, if we close above the 200 Day EMA during the trading session or over the next couple of days, then we could go higher. Nonetheless, there are a lot of concerns around the world based upon inflation, earnings, and of course the potential of a slowdown at the same time.

In this scenario, it is very difficult to get overly excited about owning stocks, so I do think that this continues to be a very trying environment. Nonetheless, if we do break out to the upside, arguing with price never works out. Because of this, I would have to follow the market regardless. All things being equal, this is a market that I think continues to be very choppy and it is worth noting that we are close to the top of the short-term trading range.

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