S&P 500 Price Forecast – Stock Market Slam Into Resistance

The S&P 500 has rallied significantly during the trading session on Friday, reaching towards the highs yet again. However, this area continues to show a lot of resistance. At this point in time, it’s likely that the market will eventually try to break out, but we will continue to see short-term pullbacks in order to take advantage of value. Earnings season has started to show signs of strength, and perhaps that is part of the reason that we are going higher. Beyond that, I believe that the Federal Reserve is the main focus of the markets right now.

S&P 500 Video 28.10.19

On Wednesday, we will have the Federal Reserve interest rate announcement and more importantly the statement coming out. That statement could be dovish enough to send this market to the upside. It’ll be interesting to see how this plays out but at this point if they are dovish enough that should send this market to the upside. On the other hand, if the market was to get surprised by the Federal Reserve with an overly hockey statement, that could sink the stock markets and send them well below the 3000 handle. However, one would have to think that Jerome Powell has been taught that Wall Street controls the Federal Reserve, not the other way around. He had backpedaled immediately after his last hawkish sounding statement and I have a hard time believing he suddenly going to do that again. This is a market that is on the verge of a breakout. Pullbacks offer value, a move to a fresh, new high offers a buying opportunity.

Please let us know what you think in the comments below