Source: PaxForex Premium Analytics Portal, Technical Insight

U.S. stock indices jumped to record highs in trading on Friday, ending the first working week of 2021 on the upside. Investors virtually ignored the political tensions in Washington in recent days, focusing on the prospects of an increase in stimulus by U.S. President-elect Joe Biden's administration. The S&P 500 index rose 20.89 points (0.55%) to 3,824.68 points.

S&P 500, H4

Pivot: 3805.00

Analysis:

Provided that the index is traded above 3781.50, follow the recommendations below:

• Time frame: H4
• Recommendation: long position
• Entry point: 3805.00
• Take Profit 1: 3850.00
• Take Profit 2: 4000.00

Alternative scenario: 

In case of breakdown of the level 3781.50, follow the recommendations below:

• Time frame: H4
• Recommendation: short position
• Entry point: 3781.50
• Take Profit 1: 3689.50
• Take Profit 2: 3610.00

Comment:

RSI indicates an uptrend during the day.

Key levels:

S&P 500, D1

Pivot: 3816.00

Analysis:

While the price is above 3589.00, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 3816.00
• Take Profit 1: 3900.00
• Take Profit 2: 4070.00

Alternative scenario:

If the level 3589.00 is broken-down, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 3589.00
• Take Profit 1: 3484.00
• Take Profit 2: 3330.00

Comment:

RSI is bullish and indicates further increase.

Key levels: