SPX

S&P Forecast – S&P 500 Looks Likely to See Buyers

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S&P 500 Technical Analysis

The S&P 500 is pretty quiet early during the trading session on Wednesday, as we continue to see a lot of hesitation. All things being equal, this is a market that I think will continue to see a lot of buyers on dips. And quite frankly, I think you’ve got a situation where value hunters will hope that the market sells off heading into the meeting.

Quite frankly, the Federal Reserve isn’t going to do anything to upset the rally. They are basically beholden to Wall Street. So it’s not really a surprise at the end of the day when they either say something that sounds somewhat dovish or they say something that sounds slightly hawkish only to see Wall Street turn things around because they know the Fed will protect them.

The 5100 level underneath should continue to be support, just as the 5200 level above, I think, continues to offer resistance. With that being the case, this is a market that ultimately continues to see a lot of upward pressure due to the fact that, quite frankly, loose monetary policy is coming by the end of the year.

The question now is whether or not the Federal Reserve will have to do it in some sense of panic or if it will just be juicing stocks again. Ironically, this is everything that they said they didn’t want to do, but the Fed hasn’t dared talk back to Wall Street as they are clearly going to do everything they can to acquiesce. I like buying dips. I think you have an opportunity to do so sometime during the day, but don’t get too big. You can always have a bit of a shock.

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

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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