SP 500 Futures Renko Chart Technical Analysis 5/12/21

Overview

SP 500 Futures fell more than 2% today because the CPI numbers shocked the market. The CPI was up 4.2%, which was higher than the 3.6% expected. The more important Core CPI was up 3%, which was higher than the 2.3% expected. The Renko chart technical analysis below was used to illustrate the support and resistance zone for SP 500 FUTURES today, 5/12/2021.

  • The Renko chart uses a traditional 6-point brick size.
  • On the upside, 4128 / 4164 is the first resistance zone.
  • On the downside, 4000 / 3960 is the next support zone.
  • Psychological barriers: 4100 / 4000

What Happened

SP 500 Futures continued its slide today. The selling again became intensified in the technology sector and pretty much spread over to the broader market fairly quickly. Dow shed almost 700 points. SP 500 Futures gave up more than 2% on the day. SP 500 Futures was unable to reclaim 4158 / 4164 overnight during the Asian and the European sessions, and gapped lower below 4128 after the CPI data. It resumed its downward path throughout the day and closed near the day low.

What’s Next

  • On the upside, 4128 / 4164 is the immediate resistance for SP 500 FUTURES.
  • On the downside, 4000 / 3960 should provide good support.
  • 4000 is more likely a psychological support.

Below is the daily Renko chart

How to Use Renko Chart Technical Analysis in Trading – Use Support, Resistance, and Trendline

It’s simpler to use the Renko chart to make the trading decisions because in a Renko chart, price movement is key. A lot of the noise is removed from the chart which makes it easy to understand and to be able to see the whole picture clearly.

Using the trendline and the support / resistance lines, it is easy to identify where SP 500 Futures may encounter support or resistance in the short term. Using today’s daily chart as an example, although SP 500 is currently between the 4128 resistance and the 3960 support, 4050 might be able to provide SP 500 some needed support because it is where the uptrend trendline is. The uptrend support came from the trendline starting at 3246 on November 2, 2020. If 4050 holds, the uptrend is still intact.

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