October 16, 2014, New York City: The S&P500 index has been currently up for the last few days and it has corrected more than 100 points through the last 5 sessions. There is a reversal trade on the upside getting ready and the action of the index on October 15, which is yesterday, indicates that buyers are stepping in to buy at around 1850 and we had a very good pull back at the lower levels. So this could have been a combination of short coverings as well as fresh buying. However given the amount of fall that we had, there will still be sufficient short position in the system, so there is at least 50 points on the upside, as soon as the index starts moving up. A suitable Emini Futures (ES) trading strategy will be, to buy the S&P500 index above 1875, and hold it for at least to 1925 or 50 points of gains. The stop for this trade would be at around 1855. We can buy at 1875, keep a stop at 1855 and aim for 1925. In fact the traders who can trade with multiple contracts, can keep certain number of contracts to release at even higher levels like 1950, because if the reversal comes in properly, we can see 1950. But 1925 is a high probability, once 1875 is crossed. That’s a trade we should definitely take. It will be the most suitable trade for the October month.