S&P 500 Price Forecast March 21, 2018, Technical Analysis

The S&P 500 went sideways initially during the trading session on Tuesday, dancing around the 2720 handle. The market looks likely to be very choppy and short-term focus until we get the Federal Reserve policy statement today. Once we do, it will give us an idea as to how many interest rate hikes are coming this year, be at 3 or 4. If we only have 3 interest rate hikes later this year, then the market will probably recover. However, if it looks as if we are going to see an even more hawkish Federal Reserve than initially anticipated, that could send this market much lower. Longer-term, I think that the stock markets probably will continue to go higher, but recently we have seen volatility pick up as traders are starting to lose confidence.

S&P 500 Video 21.03.18

I believe that the noise in the market should continue to be an issue, so I would have small position sizes at best, adding if we get momentum moving in your way. I look at the 2750 level above as the first target that buyers will go to, and perhaps struggle with. If we can clear that area, specifically the 2760 level, then I think the S&P 500 goes to the 2800 level. Alternately, if we break down below the 2700 level, we will go looking towards 2650, followed by the 2600 level under there. Between now and the Federal Reserve statement, I would not expect much.