If you are a stock trader, you know what S&P 500 means. S&P 500 is the stock index that measures the performance of 500 top US Stocks. FED is meeting again this week. As the Fed meets and earnings news rains down on the stock market, some bulls are betting the S&P 500 could break out to the upside.
The stock market defied expectations that it would have a tough time in the past week, thanks to benign earnings news and China lowering its reserve ratio for banks at the start of the week. U.S. stocks surged, with the S&P closing up 1.8 percent for the week at 2117, a new closing high and a hair under its all-time intraday high of 2,120.
So if you are an S&P Emini trader, you better watch the FED Meeting scheduled for Tuesday and Wednesday. So the breakout can take place on Wednesday when FOMC Statement released. This is the time when the market will experience high levels of volatility.
Richards said the Fed is unlikely to provide any surprises, so the next big piece of information for the market will be the April nonfarm payrolls on May 8, after March’s weak 126,000 jobs.
“I think the markets will steadily drift higher. The ‘risk on’ scenario remains and then there are three or four days before payrolls where the market could correct slightly. Next week should be fine, and then a nervous week going into payrolls. I see payrolls as a binary event,” he said.