Start Trading Now Get Started
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

S&P 500 Forecast: Navigating the Path Amidst Rising Volatility

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

In the end, the S&P 500 embarks on a journey marked by heightened volatility, with its course hinging on key technical levels and the outcome of the FOMC meeting. 

  • In the pre-market futures session on Wednesday, the S&P 500 displayed a modest rally, signaling an ongoing quest for solid support levels, primarily near the 50-day Exponential Moving Average and a well-defined uptrend line etched on the chart.
  • These key technical markers serve as crucial points of reference as the market treads cautiously in its journey.
  • This market is still in an uptrend, so it suggests it will only be a matter of time before there is a new narrative to get buyers into it.

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review
 

All things considered; the prevailing trajectory appears to align with a rising wedge pattern. However, it's important to underscore that a breakdown below Tuesday's session lows could potentially alter this course of action, introducing an element of uncertainty. This could send the market into a lot of trouble, but it is more likely than not, that Powell will do whatever he can to make sure Wall Street doesn’t have to suffer much in the way of losses.

Should the market indeed breach the bottom of Tuesday's session, the prospect of a descent to the 4400 level comes into play. Conversely, a reversal and a breakout above the high set by Tuesday's hammer candlestick may open the door to an ascent toward the upper boundary of the wedge. Despite the potential for upward pressure, traders must be mindful of looming volatility, driven primarily by the Federal Open Market Committee (FOMC) meeting and, perhaps even more notably, the subsequent press conference.

Be Prudent

Given these circumstances, exercising caution is paramount. Position sizes should remain reasonable to mitigate risks in a market characterized by pronounced fluctuations. As the market scrutinizes the FOMC's statement and, more critically, the press conference that follows, the nuanced sentiments will play a pivotal role in determining market direction. While the interest rate decision itself may not register as a significant event, the possibility of an unexpected interest rate hike by the FOMC could indeed disrupt the status quo and trigger a market upheaval.

In the end, the S&P 500 embarks on a journey marked by heightened volatility, with its course hinging on key technical levels and the outcome of the FOMC meeting. The "buy on the dips" strategy remains relevant, as Wall Street traders are adept at identifying narratives that drive stock purchases. In this environment, adaptability, vigilance, and prudent risk management are indispensable as investors navigate the dynamic ebb and flow of the financial markets.

S&P 500

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews