Market Prediction of S&P 500 Update

Stock market prediction for S&P 500

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

Stock market prediction for S&P 500

The doji candlesticks over the last two trading days suggests traders are uncertain if the market will keep going higher. Notice that the CMF has taken a small turn down today as well.

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.

Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on unless specifically stated in the article. Owner of Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.

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Sofi AI Market Sentiment Gauge

Sofi AI Market Sentiment Gauge

Market is extremely oversold. Good time to take long positions.