Overview
SP 500 Futures fell more than 1% today because the market was overheated recently. The Renko chart technical analysis was used to illustrate the support and resistance zone for SP 500 FUTURES today, 5/10/2021.
- The Renko chart uses a traditional 6-point brick size.
- On the upside, 4224 / 4230 is the resistance zone.
- On the downside, 4164 / 4128 is the next support zone.
What Happened
SP 500 Futures consolidated above 4200 before 2 pm Eastern. The selling became intensified in the technology sector and then spread over to the broader market. Dow gave up 300+ points gain and reversed lower in the end. SP 500 Futures also gave up the 4200 psychological support later in the afternoon.
What’s Next
- 4224 / 4230 is the immediate resistance for SP 500 FUTURES on the up side.
- Since it closed below 4200, it might encounter some resistance on its way up because 4200 is a psychological barrier.
- On the down side, 4164 / 4128 should provide good support.
Below is the daily Renko chart
How to Use Renko Chart Technical Analysis Support and Resistance in Trading
Price movement is the key element in the Renko charts. The “time” element is removed. Therefore, there is less noise in the Renko charts. The support and resistance levels are easier to be identified. When the support or resistance level is broken, a trend can also be identified A trade decision can be based on the trend, the support or resistance levels.
