S&P rises – is turmoil over?

After dropping later on the day to negative yesterday, S&P future is up again today and by 2.4% so far.

So is the turmoil done with and safe to jump in risk trends?

• There has been selective rise in global equity markets today. While Australia was up 1.6%, Japan's Nikkei rose 3.2%, European blue chip index EuroStxx50 is up 2.9% and S&P futures pointing to positive open, China's Shanghai composite dropped by 1.27% at closing, India's Nifty 50 dropped 1.13%, German DAX is down -0.3% and FTSe100 is marginally in red.

Usually after risk aversion and massive drop, heavy buying across globe flows, when risk aversion subsides globally. So instead of massive risk aversion, moderate and selective risk aversion still remains in play.

Moreover, in spite of its rise, S&P 500 still remains a bit far from its key resistance area at 1950-1965 and Yen is still well bid against most major currencies, trading at 119.7, below 120.5 key resistance.

Unless these two clear these levels, it may not be safe enough to jump on the risk trends.