Source: PaxForex Premium Analytics Portal, Technical Insight

U.S. stock indices closed 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 U.S. Treasuries, as well as optimism over the approval of a coronavirus vaccine made by Johnson & Johnson (NYSE: JNJ) and the prospects 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 points.

S&P 500, H4

Pivot: 3885.00

Analysis:

Provided that the index is traded above 3850.00, follow the recommendations below:

• Time frame: H4
• Recommendation: long position
• Entry point: 3885.00
• Take Profit 1: 3912.00
• Take Profit 2: 3950.00

Alternative scenario: 

In case of breakdown of the level 3850.00, follow the recommendations below:

• Time frame: H4
• Recommendation: short position
• Entry point: 3850.00
• Take Profit 1: 3818.00
• Take Profit 2: 3776.00

Comment:

RSI indicates an uptrend during the day.

Key levels:

S&P 500, D1

Pivot: 3902.00

Analysis:

While the price is above 3725.00, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 3902.00
• Take Profit 1: 3950.00
• Take Profit 2: 4110.00

Alternative scenario:

If the level 3725.00 is broken-down, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 3725.00
• Take Profit 1: 3675.00
• Take Profit 2: 3580.00

Comment:

RSI is bullish and indicates further increase.

Key levels: