S&P 500 Price Forecast – S&P 500 Rallies After PCE Miss

From Daily Forex, this is Christopher Lewis taking a look at the S&P 500. The S&P 500 initially dipped a little bit during the trading session to test the 50-day EMA on Wednesday, but has turned around to show signs of life again. As we continue to see a lot of questions asked about what happens next with the Federal Reserve. After all, traders are hoping that interest rates will eventually roll over. And after the core PCE numbers came out lower than anticipated, traders got a little bit excited and started suggesting that maybe the Federal Reserve isn't going to be as hawkish and aggressive with their interest rates as once thought. Whether or not that's true, completely different story. But what I do see here in this market is a sideways market, one that is consolidating. The 7600 level is an area that had been support followed by 7500. And then above, we have significant resistance at the 7800 level. If the 7800 level eventually gets broken, and the chart looks like eventually it may attempt to do so, then it lets the S&P 500 continue to go higher. In general, the economy seems to be doing better than a lot of people had thought with ADP numbers coming out today and finalized GDP from the United States. And it all looks like it's a strong economy, maybe with a little bit less inflation than we had feared. All things being equal, that is a bullish thing for the S&P 500. But we also have the jobs number on Friday. So that is worth paying close attention to. I remain a buy-on-the-dip type of a trader in the S&P 500.