S&P500 continues to trade lower and lost more than 2.5% in past two trading days.In previous month the index declines more than 7.5% on account of renewed trade war and declining US bond yield. US bond yield is trading lower and hits 20-month low .The yield curve has inverted and spread between 10 year and 3 month has widened by 20 basis point from 10 basis point. The index hits intraday low of 2731 and is currently trading around 2745.70.
On the higher side, major support is around 2720 and any violation below will drag the index down till 2700/2680.
The near term resistance is around 2772 (20-- day MA) and any indicative break above will will take the S&P500 index till 2800/2823/2851/2890.
It is good to sell on rallies around 2775-80 with SL around 2801 for the TP of 2681.
