S&P 500 poised for bull signal into the Fed (S&P 500 forecast)

Intermediate
  • In a report last week we stated “S&P 500 rebound, looking to resume the party!
  • The party has not yet fully started again, but guests are turning up and the threat of the party ending have receded.
  • The rebound efforts in the past week have eased the bearishness from the early September, tech driven rout.
  • However, the market still needs to overcome notable resistance (3424.25 for the future) to signal a base and to try to resume upside pressures (to restart the party).
  • Key today will be the reaction to the Fed Meeting, with hopes of a still dovish Fed, though also looking for positive forward guidance on the economy.

S&P 500 future day trade outlook: Firm rebound, aiming higher into the FOMC

Day trade update and view

A Tuesday rally again above 3392.5 to build on Monday’s advance and Friday’s setback then bounce from just above key 3295.5 support, from 3298.25, to leave a further upside risk into Wednesday.

Day trade setup

  • We see an upside bias through 3409.0 for 3424.25; a break here aims for the 3447.0/53.25 resistance area and maybe towards key 3484.25.
  • But below 3366/64 aims for 3336.25 and opens risk down to possibly even 3298.25/95.5.

S&P 500 future intermediate-term outlook

The early September sell-off below 3319.5 signalled an intermediate-term shift to a broader range seen as 3190.25/88.5 to 3484.25.

Upside risks: Above 3484.25 sets an intermediate-term bull trend to target 3587.0, the 3626/30 extension target area and 3709.75.

Downside risks: Below 3190.25/88.5 sets an intermediate-term bear trend to target 3105.25, 3000.0, 2983.5 and 2923.75.

6 Hour S&P 500 Chart

S&P 500 chart

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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