S&P 500 Forecast: Plunges Below the 50-Day EMA

The Federal Reserve held a meeting during the business session on Wednesday and announced a rate increase. The SandP 500 fell to open trade on Thursday and never looked back. We have broken through the 50 day EMA as we continue to see a lot of negativity. The Federal Reserve held a meeting during the business session on Wednesday and announced an interest rate increase. In addition, the market tried to find some obvious argument in all this to see the market reverse when adults return to work. Advertisement Stock Markets Crash Again Buy Dips Now! Remember, we see this quite often when the markets do everything they can to find something fishy about the Fed’s statement, but the next day when people really start paying attention to the fact that the Fed is going to be tight for a long time . So it makes a lot of sense that we’re seeing this market breakout. Finally, we now have to worry about the output and that next year will not look so good. Position Sizing Becomes More Important Friday is the option expiration date with the highest volume so far, so we’re likely to see some volatility that’s a little unpredictable. Trading in this environment is more likely than not risky, so we get some bounce. This bounce is more likely than not to attract more sellers, we could just as easily break out of the bottom of the candlestick and ride lower. When we get to next week, things are going to get interesting because there is a blackout coming in the market where companies can’t buy back their shares. Remember that much of what drove the stock market up for years was companies buying their own stock. On top of that, we also have the illiquidity of the holiday, so of course there is some risk involved. If we usually talk about the „Holy Rally”, maybe we are talking about the end of year sale. The size of the station becomes more important the further into the month we get, so pay attention if nothing else.

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