S&P 500 Price Forecast – S&P 500 Awaits Jerome Powell

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S&P 500 Technical Analysis

The S&P 500 E-mini contract is slightly higher as we head towards the Federal Reserve statement later this session. Ultimately, a 75 basis point rate hike is expected, but there are other forces at play as well. After all, we need to see what the Federal Reserve is going to forecast as far as its attitude. It’s economic outlook will weigh upon the market, and people will have to pay close attention to it. I believe at this point it’s likely that we see more noise than anything else, so be aware that these days do tend to produce a lot of bizarre signals.

If we break down below the lows of the last several sessions, then we more likely than not go down to the 3800 level. If we can break down below there, we are going to retest the lows. Any rally at this point in time I would look at with severe suspicion unless of course Jerome Powell explicitly states that the Federal Reserve is going to change its overall attitude. I just don’t see how that happens with inflation still roaring, and as he has already said that pain will be experienced.

I suppose there’s a theory that some pundits out there will start buying because he didn’t raise 100 basis points, which should just be a nice selling opportunity before it’s all said and done. It’s really hard to say, because quite frankly it appears that hope springs eternal, and that a lot of Wall Street still believes that Jerome Powell will save them from losses before they get out of hand. Unfortunately, inflation is ripping apart the US economy on Main Street, something that people don’t seem to be paying attention to.

US Stock Market Forecast Video for 22.09.22

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