FxWirePro: S&P500 trades below 200- day MA, dip till 2720 likely

S&P500 continues to trade lower and lost more than 1%.In this month the index declines more than 6.5% on account of renewed trade war.US President Trump said that US will impose 5% on Mexican imports from Jun 10th 2019 and to put additional tariff of 25% if Mexico does not “reduce or eliminate number of illegal aliens”. US 10 year yield hits 20 -month low at 2.17%. The yield curve inversion (3 month and 10 year yield) indicates chance of recession and spread widened to 18 basis point from 10 basis point. The index hits intraday low of 2758 and is currently trading around 2761.90.

On the higher side, major support is around 2745-50 and any violation below will drag the index down till 2720/2700.

The near term resistance is around 2800 and any indicative break above will will take the S&P500 index till 2823/2851/2890.

It is good to sell on rallies around 2775-80 with SL around 2801 for the TP of 2721.