S&P 500 Price Forecast – Stock Markets Recover After Federal Reserve Comments

The S&P 500 has bounced quite nicely during the course of the trading session on Monday, as traders start to weigh upon the idea of whether or not the Federal Reserve is going to be able to tighten rates. The overreaction seems to be getting work against, and therefore it is very likely that we will go looking towards the all-time highs, and perhaps break above there. Once we do it opens up the possibility of a move to the 4400 level.

S&P 500 Video 22.06.21

To the downside, the 50 day EMA also offer support, right along with the 4000 level underneath that is not only a large, round, psychologically significant figure, but it is also an area where we have a gap that will also have an influence on whether or not we can stabilize. If we were to break down below the 4000 handle, then it is possible that we could go looking towards the 200 day EMA, which at that point I would be a buyer of puts. I have no interest in shorting this market whatsoever, due to the fact that the Federal Reserve has already started to walk back some of their hawkish comments, and therefore it shows just how beholden to Wall Street that the Fed is.

We are still very much in an uptrend, but one thing that I look at more than anything else is the fact that we continue to see buyers jump in based upon the fact that there is plenty of liquidity out there, and the Federal Reserve is nowhere near tightening things, despite the fact that they have recently shown a proclivity to confuse the market yet again.

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