The market prediction for the S&P 500 is coming along nicely. With two days into the trading week, price action is a little stronger than the projected path but that could change by week's end.
Stock Market Prediction Chart
The Federal Reserve's two day meeting ends on Wednesday afternoon with an expected announcement that the Fed will reduce its balance sheet by buying fewer bonds. Keep in mind that the Fed's buying of bonds is what has kept rates down. As demand for bonds drops, yields will go up. While other central banks and private investors will buy some of the Treasurys and mortgages that the Fed is not buying, there still will be an increase in the supply of bonds which will push bond yields higher.
The Federal Reserve plans to slow down its purchase of bonds as well as mortgage securities at an initial pace of $10 billion a month, increasing it by that same amount each quarter until it reaches a total of $50 billion a month.