INVERTED YIELD CURVE- MARKET CORRECTING?
- Bond market is signalling ‘Recession’ as the yield curve has inverted. For the less informed, it means that the interest rate yield for 10 year (long term) bonds has fallen below interest rate on 2 year (short term) bonds.
- S & P 500 reached above 300 before falling down near 200 day moving average. It’s difficult to say whether the 200 day MA will hold but it is important to note that it is getting strong support at ‘TREND LINE’ dating to 2016.
- With trade war in focus, it is possible that the stocks may fall further to 2450-2500 levels.
Read our post on how to play this market effectively. Use the sell-off to your advantage