S&P 500 Forecast: Slams into a Big Figure Again

I think the market is more likely than not to continue, and between now and Wednesday it may be difficult to navigate. , The S&P 500 rose during the trading session on Friday, as traders began betting on easing from the Federal Reserve. A big interest rate announcement is coming Wednesday, as the Federal Reserve will almost certainly raise rates by 75 basis points. That said, the market will pay attention to this statement later because it is a huge indicator of where we could be headed next. Advertisement IS MONEY READY TO WORK FOR YOU? TRADE NOW I think the market is likely to continue to be noisy and may be difficult to navigate between now and Wednesday. Finally, Jerome Powell comes out and reiterates the Fed’s hawkish stance, so I think it’s probably only a matter of time before we see a selloff. After all, the Fed is worried about inflation, not the stock market. Although some economic indicators have slowed down a bit, we are far from inflation and so you have to understand that the Fed still has a 2% target and we are now well over times. Sitting on the sidelines The 50 day EMA below should provide support and if we fall below that we could really break out. In this scenario, it could open up a move to the 3,600 level, but frankly, the market must be afraid of that happening. Yes, Jerome Powell’s statement will almost certainly affect what happens, but I think given enough time, we’ll have to endure a downside, because frankly, there’s no reason for stocks to be higher other than „the Fed can turn.” In other words, if they don’t turn around, this stock market will burn. A break above the 3900 level could open the door for a move to the 000 level, but I’m not holding my breath for that to happen. I understand that it might be possible, but making it difficult is just bad news. At the end of the day, this is a market you have to be very careful with, which is why I’m sitting on the sidelines after the Fed announcement/statement late Wednesday. The risk is simply not worth it.

Ethan Andrews

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