Technical Analysis:
Currently trading around 18050 price already gave good run and we haven't got any rectracement back to the lower levels which does not make it good for buying from here. If we see structure shift or lower lows we can go for selling towards 17850 levels.
Fundamentals:
Markets have mostly traded higher so far in May, as investors took comfort from an upbeat earnings season as well as a recent softer-than-expected labor market report, which tempered concerns about the Fed keeping interest rates higher for longer.
Traders are pricing in a 65% chance of the U.S. central bank cutting interest rates by at least 25 basis points in September, according to the CME Group's Fedwatch tool, up from about 54% a week ago.
"The market has now priced in the Fed's move for the rest of the year, so the reaction function will be lower moving forward and investors will start to focus more on the economic and earnings backdrop," said Dylan Kremer, chief investment officer at Certuity.
"The bond yields aren't necessarily reflecting the expected Fed activity..and that's primarily due to still resilient growth."
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