Source: PaxForex Premium Analytics Portal, Technical Insight

The U.S. stock market fell significantly on Friday, with the Dow Jones Industrial Average experiencing the worst week and month since March. There was considerable volatility in the market during the week before the presidential election. Worsening investor sentiment was due to record increases in COVID-19 infections, new restrictions in Europe, and mixed quarterly results of major technology companies.

S&P 500, H4

Pivot: 3278.00

Analysis:

Provided that the index is traded below 3290.00, follow the recommendations below:

• Time frame: H4
• Recommendation: short position
• Entry point: 3278.00
• Take Profit 1: 3251.00
• Take Profit 2: 3238.00

Alternative scenario: 

In case of breakout of the level 3290.00, follow the recommendations below:

• Time frame: H4
• Recommendation: long position
• Entry point: 3290.00
• Take Profit 1: 3308.00
• Take Profit 2: 3333.00

Comment:

RSI indicates a downtrend during the day.

Key levels:

S&P 500, D1

Pivot: 3243.14

Analysis:

While the price is below 3365.00, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 3243.14
• Take Profit 1: 3210.00
• Take Profit 2: 3130.00

Alternative scenario:

If the level 3365.00 is broken-out, follow the recommendations below.

• Time frame: D1
• Recommendation: long position
• Entry point: 3365.00
• Take Profit 1: 3588.00
• Take Profit 2: 3745.00

Comment:

RSI is bearish and indicates further decrease.

Key levels: