FxWirePro: Sell S&P500 targeting 2275 in short-term

Over the past three months, or so, the U.S. benchmark stock index S&P500 has declined almost 9 percent as it declined from around 2950 area in Mid-August to 2637 as of today. The geopolitical tensions between the United States, and many countries in the rest of the world over changed policies of the Trump administration has created a sense uncertainty among investors, while the volatility has been moving higher thanks to central banks’ winding up of the easing policies that began in the aftermath of the 2008/09 ‘Great Recession’.

Our calculations suggest that amid these uncertain factors, where the United States’ policies are increasingly hostile towards China, especially in terms of trade, technology, and military, as well as Russia, and soured towards the European Union, more pain is in store for the S&P500.

Trade idea:

Sell SPX500 (CFD of S&P500) at the current rate of 2639 and at each rally of 40 points with a stop loss around 2815 area and a target around 2275 area.