Updates: Going long the US 500 and closing my shorts

The US 500 cash has held a strong rising trend since Q4 2014 and has convincingly broken above the 38.2% retracement of the February sell-off overnight at 2069.

US traders
Source: Bloomberg

Stochastic momentum is starting to turn up and the market is telling us it has expectations of a favourable outcome from the FOMC meeting this week. We also saw some modest selling of USDs and this once again has given equity bulls encouragement.

As detailed last week, I feel this more bullish stance should be taken advantage of and I personally prefer a long S&P 500 (US 500) trade. I would look to place a stop at 2035, just below the 11 March low of 2038. I have not set a target, but would be looking for a test of the all-time high of 2119.

I’ll be keeping position sizing small for now, potentially adding on a break above 2088.

Closing EUR/JPY and AUD/USD shorts

With a much broader risk-friendly tone coming into the market, I have also closed my EUR/JPY and AUD/USD ideas at market (¥128.30 and $0.7640 at the time of writing).

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