The S&P 500 posted modest gains to end a four-day losing streak.

US500 or S&P 500 index rose 0.10% on Tuesday after cementing four-day straight sessions of declines. The Index was led higher in the later part of the session driven by the energy, communication services and materials sectors. On Tuesday, The Bank of Japan moved to loosen a cap on 10-year government bond yields, a potential sign of a shift away from its ultraloose monetary policies that set the global bond yields up. Investors bet that we are at the end of rate hiking cycles and the most central banks could stop hiking rates next year.

US500 Daily Chart Directional bias - 1 Week 

Trade Insights – US500

The Chart shows viable long positions above the pivot at 3855 with the target to test the key resistance Level at 3955 and then the test of the resistance zone between 4050 to 4080.

Alternatively, possible short positions below the pivot at 3855, heading towards the target of the key support level at 3796 and then the further test of the support zone between 3725 to 3700.

US 10-Year Treasury Jumped

The US 10 Year Treasury note, also seen as a proxy for global borrowing costs, bounced back above 3.6%. On Tuesday, the Bank of Japan took a surprise hawkish turn on its monetary policy to navigate an increasingly complex economic outlook and announced they would allow benchmark bond yields to trade as high as 0.5%. The country’s 10-year bond yields surged as a result and Global bond yields jumped to follow the course. This was followed by rate hikes by European Central Bank and the Federal Reserve in the last week.