Listen to the latest market mood for the S&P 500:

The risk tone has been broadly higher over the last week in the markets as a double dose of vaccine news boosted risk sentiment and US stocks higher. The Pfizer/BioNtech vaccine news last week and the Moderna vaccine news yesterday have all helped to boost US stocks.

Although wider questions do remain in the near term about how COVID-19 cases will drag on economies short term, the bigger picture is positive for stocks deep into 2021. On top of this, seasonally, the S&P 500 does very well at the end of November in the run up to early December. In the last 10 years, the S&P 500 has only lost twice between 22 Nov and 2 December.

Therefore, expect S&P 500 buyers on pullbacks.

Trade Risks: The main risk to this trade is if there is a negative change in the risk tone and/or the US has a national lockdown.