Source: PaxForex Premium Analytics Portal, Technical Insight
U.S. stock indices ended Tuesday's trading in decline after a sharp rise the day before. In particular, shares of major technology companies fell significantly. The market was supported earlier this week by a decline in US Treasuries, as well as optimism over the approval of a coronavirus vaccine produced by Johnson & Johnson (NYSE:JNJ) and the prospect of a new aid package for the U.S. economy. The yield on 10-year U.S. government bonds fell below 1.45% this week after jumping to a high for the year of 1.6% a week earlier. The Standard & Poor's 500 fell 31.53 points (0.81%) to 3,870.29.
S&P 500, H4
Pivot: 3885.00
Analysis:
Provided that the index is traded below 3914.00, follow the recommendations below:
- Time frame: H4
- Recommendation: short position
- Entry point: 3885.00
- Take Profit 1: 3871.00
- Take Profit 2: 3853.00
Alternative scenario:
In case of breakout of the level 3914.00, follow the recommendations below:
- Time frame: H4
- Recommendation: long position
- Entry point: 3914.00
- Take Profit 1: 3928.00
- Take Profit 2: 3950.00
Comment:
RSI indicates a downtrend during the day.
Key levels:
| Resistance | Support |
| 3950.00 | 3871.00 |
| 3928.00 | 3853.00 |
| 3914.00 | 3830.00 |
S&P 500, D1
Pivot: 3883.00
Analysis:
While the price is above 3790.00, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 3883.00
- Take Profit 1: 3950.00
- Take Profit 2: 4110.00
Alternative scenario:
If the level 3790.00 is broken-down, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 3790.00
- Take Profit 1: 3695.00
- Take Profit 2: 3580.00
Comment:
RSI is bullish and indicates further increase.
Key levels:
| Resistance | Support |
| 4260.00 | 3790.00 |
| 4110.00 | 3695.00 |
| 3950.00 | 3580.00 |
