Lots of whipsaws have been taking place in the S&P500 (SPX). There is enough fear on the trading floor thinking “what if” the US Fed begins to sound more hawkish than ever before in the context of interest rate hike. However, our view is that US Fed will be “patient” in any interest rate hike. The current market volatility of gap ups and gap downs is to be expected till the Fed’s notes are in the open. Technically, the S&P500 (SPX) needs to stay and close above 2055 for upmove to play out with a target of 2150, a new lifetime high. This will have to coincide with a dovish Fed stance.

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