The FOMC minutes are due out at 19:00 UK time on Wednesday. Since the very strong NFP print on February 3, economic data has been leading markets away from the idea of a Fed pause. More and more analysts are seeing the re-pricing in interest rate markets as higher rates from the Fed are being expected. This is a natural headwind for stocks and is why the S&P500 has been finding resistance as of late.

On Wednesday the latest set of minutes from the Fed’s last meeting will be released. Will they contain any surprises? From a seasonal perspective, the S&P500 is prone to weakness after the FOMC minutes. So, will this make a hawkish surprise a good opportunity to sell the S&P500 out of the minutes on Wednesday?

Major Trade Risks: The major risk here is if the minutes contain dovish surprises which make markets once again expect a pause from the Federal Reserve.

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