Source: PaxForex Premium Analytics Portal, Technical Insight

U.S. stock indices closed Tuesday's trading with multidirectional changes. Investors were assessing the statement of U.S. Treasury Secretary Janet Yellen, who said that the Federal Reserve may have to raise interest rates to prevent the U.S. economy from overheating if the fiscal spending programs proposed by U.S. President Joe Biden's administration are implemented. The Standard & Poor's 500 fell 28 points (0.67%) to 4164.66 points.

S&P 500, H4

Pivot: 4149.00

Analysis:

Provided that the index is traded below 4178.00, follow the recommendations below:

• Time frame: H4
• Recommendation: short position
• Entry point: 4149.00
• Take Profit 1: 4118.00
• Take Profit 2: 4090.00

Alternative scenario: 

In case of breakout of the level 4178.00, follow the recommendations below:

• Time frame: H4
• Recommendation: long position
• Entry point: 4178.00   
• Take Profit 1: 4219.00
• Take Profit 2: 4250.00

Comment:

RSI indicates a downtrend during the day.

Key levels:

S&P 500, D1

Pivot: 4155.00

Analysis:

While the price is above 4020.00, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 4155.00
• Take Profit 1: 4270.00
• Take Profit 2: 4385.00

Alternative scenario:

If the level 4020.00 is broken-down, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 4020.00 
• Take Profit 1: 3950.00
• Take Profit 2: 3855.00

Comment:

RSI is bullish and indicates further increase.

Key levels: