Source: PaxForex Premium Analytics Portal, Technical Insight

Analyst warnings on the valuation of dotcom bubbles are forcing investors to sell large technology stocks. At the same time, investors continue to dispose of shares of real estate and utilities that are generally considered safer investments in uncertain environments. The S&P 500 closed with a 38-point drop, losing 1.1 percent on Friday after three consecutive days of decline, ending the week with a 0.65 percent drop. Thus, it is now the third week after reaching a historic high as the index falls.

S&P 500, H4

Pivot: 3319.17

Analysis:

Provided that the index is traded below 3375.00, follow the recommendations below:

• Time frame: H4
• Recommendation: short position
• Entry point: 3319.17
• Take Profit 1: 3292.00
• Take Profit 2: 3240.00

Alternative scenario: 

In case of breakout of the level 3375.00, follow the recommendations below:

• Time frame: H4
• Recommendation: long position
• Entry point: 3375.00
• Take Profit 1: 3428.00
• Take Profit 2: 3452.00

Comment:

RSI indicates a downtrend during the day.

Key levels:

S&P 500, D1

Pivot: 3314.60

Analysis:

While the price is below 3425.00, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 3314.60
• Take Profit 1: 3257.00
• Take Profit 2: 3130.00

Alternative scenario:

If the level 3425.00 is broken-out, follow the recommendations below.

• Time frame: D1
• Recommendation: long position
• Entry point: 3425.00
• Take Profit 1: 3584.00
• Take Profit 2: 3805.00

Comment:

RSI is bearish and indicates further decline.

Key levels: