Source: PaxForex Premium Analytics Portal, Technical Insight

The U.S. stock market closed with a decline amid worsening investor sentiment due to a lack of progress in agreeing on a new stimulus package. Speaker of the U.S. House of Representatives Nancy Pelosi on Saturday night called on the White House to agree on the remaining outstanding issues within 48 hours, The Wall Street Journal reported. Pelosi and U.S. Treasury Secretary Steven Mnuchin were scheduled to hold further discussions on Monday. Standard & Poor's 500 dropped 56.89 points (1.63 percent).

S&P 500, H4

Pivot: 3426.90

Analysis:

Provided that the index is traded below 3467.00, follow the recommendations below:

• Time frame: H4
• Recommendation: short position
• Entry point: 3426.90
• Take Profit 1: 3400.00
• Take Profit 2: 3370.00

Alternative scenario: 

In case of breakout of the level 3467.00, follow the recommendations below:

• Time frame: H4
• Recommendation: long position
• Entry point: 3467.00
• Take Profit 1: 3515.00
• Take Profit 2: 3550.00

Comment:

RSI indicates a downtrend during the day.

Key levels:

S&P 500, D1

Pivot: 3432.63

Analysis:

While the price is above 3390.00, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 3432.63
• Take Profit 1: 3588.00
• Take Profit 2: 3745.00

Alternative scenario:

If the level 3390.00 is broken-down, follow the recommendations below.

• Time frame: D1
• Recommendation: short position
• Entry point: 3390.00
• Take Profit 1: 3305.00
• Take Profit 2: 3210.00 

Comment:

RSI is bullish and indicates further increase.

Key levels: