FxWirePro: S&P500 shorter term outlook – Buy targeting 2110

As suggested yesterday in "US equity sell-offs may not gain momentum", due to lack of major risk aversion in the market, seem to be playing out.

After Monday's big sell-off of more than 1%, failed to gain traction. This is more likely to be the case at least in the near term.

Though rate hike bets from FED has risen sharply since Last Friday's payroll report, 25 basis points rise is not a very much unanticipated one, as a matter of fact both companies, investors, traders and fund managers had ample time to adjust their portfolio for such a rise.

Moreover, another risk on event from European Central bank (ECB) is scheduled well ahead of FED policy meeting, where the bank is expected to ease further.

So we pointed that mega sell off is unlikely at least before ECB.

In fact S%P 500's recovery yesterday and today in future (CFD) market has opened a window od opportunity for buyers.

Trade idea -

• Buy S&P 500, at current price 2087 and at dips with stop loss around 2070 area (recent low) and target around 2110.