Major resistance- 2720
S&P500 has formed a double top around 2820 and shown a massive sell-of in past three trading session. The index has declined more than 6.5% this week. The dip was mainly due to easing US 10 year bond yield and 2 year yield surpasses 5 year(inverted yield curve). S&P500 halted its weakness and shown sharp recovery of more than 3%. Markets eye US Non Farm Payroll data for further direction. It hits high of 2698 and is currently trading around 2.
The near term resistance is around 2700 and any break above targets 2740/2763/280. The index should break 2820 for further bullishness.
On the lower side, near term support is around 2761 (200- day MA) and any break below targets 2740/2718 (20- day MA).
It is good to buy on dips around 2635-40 with SL around 2600 for the TP of 2755.
