Source: PaxForex Premium Analytics Portal, Technical Insight

U.S. stock indices closed Thursday's trading with small losses, reversing down closer to the end of the session. The Standard & Poor's 500 fell 14.3 points (0.38%) to 3,795.54 points. Investors were focused on the prospects of more stimulus by U.S. President-elect Joe Biden's administration. Later on Thursday, Biden was to announce the details of the fiscal stimulus package, which could reach $2 trillion.

S&P 500, H4

Pivot: 3795.00

Analysis:

Provided that the index is traded below 3826.00, follow the recommendations below:

• Time frame: H4
• Recommendation: short position
• Entry point: 3795.00
• Take Profit 1: 3737.00
• Take Profit 2: 3663.00

Alternative scenario: 

In case of breakout of the level 3826.00, follow the recommendations below:

• Time frame: H4
• Recommendation: long position
• Entry point: 3826.00
• Take Profit 1: 3866.00
• Take Profit 2: 3900.00

Comment:

RSI indicates a downtrend during the day.

Key levels:

S&P 500, D1

Pivot: 3795.00

Analysis:

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

• Time frame: D1
• Recommendation: long position
• Entry point: 3795.00
• 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: