SP500 Bows Down to Fears of Tightening Rates – Short Positions Suggested
U.S stocks dipped on Friday following Federal Reserve Chair Janet Yellen’s speech to central bankers and economists at Jackson Hole, Wyoming. Yellen said “the case for an increase in the federal funds rate has strengthened in recent months”, which is in line with other Fed official’s point of view.
Even though a specific timing for the next move on interest rates was not pointed out, the U.S dollar gained against most of its peers and sent equity markets lower. At the time of writing, none of 10 major S&P 500 sectors were trading higher. The financial sector, which stands to gain the most if rates are raised, unexpectedly dropped 0.11% after surging up by 0.78% initially.
Sell Limit at 2168.85, Take profit at 2162.00, Stop loss at 2176.00