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

Jimmy Khan

Sep 22, 2022 14:54

Techniques for the S&P 500

As the Federal Reserve announcement later in the afternoon approaches, the S&P 500 E-mini contract is marginally higher. A 75 basis point rate increase is anticipated in the end, but there are other factors at work as well. We must, after all, wait and see what the Federal Reserve will predict on its outlook.

People will need to pay great attention to it since the market will be impacted by its economic outlook. You should be aware that these days tend to create a lot of strange signals because I think it's probable that we will witness more noise than anything else at this time.

It is more probable than not that we will drop below the 3800 level if we break below the lows of the most recent few sessions. We are going to retest the lows if we can go below that level. Unless, of course, Jerome Powell specifically declares that the Federal Reserve is going to modify its general attitude, I would view any rally at this point with extreme skepticism. With inflation still raging and as he has previously said, pain would be felt, I simply don't see how that can happen.

It's possible that some analysts will start buying since he didn't hike 100 basis points, but before it's all said and done, it should merely provide a great selling opportunity. It's difficult to say because, quite simply, it seems like optimism is a virtue and that a large portion of Wall Street still has confidence that Jerome Powell will prevent more losses. Unfortunately, inflation is destroying the US economy on Main Street, and nobody seems to be paying attention to this.