S&P 500 Price Forecast – S&P 500 E-mini Contract Pulls Back

Technical Analysis of the S&P 500

As we continue to wait for the Federal Reserve statement on Wednesday and many people speculate as to what Jerome Powell would say, the S&P 500 E-mini contract has slightly declined during the trading session on Monday. The truth is that as everyone gets ready for the possible volatility late Wednesday, we are going to see a lot of loud activity, but short-term back-and-forth. Since there is so much inflation in the world, even if it is declining, it is still much more than the Federal Reserve's aim, many people are beginning to believe that the Federal Reserve will need to maintain monetary policy looser than expected. There is even speculation that they may decide to increase their aim and accept inflation of 3%. This is absurd.

What will happen in the market in response to the upcoming news is the question at hand. I don't believe we will definitely break down below the 200-Day EMA between now and then, but I do think that if we do have a move ahead of time, it will probably be more bearish than positive. It is not only a very significant technical indication, but it is also close to the psychologically significant 4000 level. In the long run, a rise to the 4200 level is possible if we were to surpass the peak of the shooting star from the Friday session. In the end, this condition tends to increase volatility.