Below is the S&P 500 Futures Daily Renko chart. RSI is at 94 and the price is 4121. All possible signs indicate an imminent correction. I opened a conservative buy-write position today. Bought SDS at 10 and Sold 06/18/2021 10.00 Call at 0.55. SDS is ProShares ETF seeks a return that is -2x the return of its underlying benchmark (target) for a single day. The base for my purchase would be 9.45. My maximum profit would be $0.55, which translates to a decline of the S&P 500 by approximately 3%.
Based on the S&P 500 FUTURES Daily Renko Chart below, 4116 could be possible, right?
On 2/2/2021, S&P Futures reached 3798 high and the RSI was at 71.
On 2/15/2021, S&P Futures reached 3942 high and the RSI was at 94.9. It was up 144 points between the 2 highs.
On 4/1/2021, S&P Futures reached 3972 high and the RSI was at 70.
Based on the example from February 2 to February 15, S&P Futures could reach 4116 high and the RSI could reach 95. It would be up 144 points between the 2 highs.
Can the history repeat?
Below is the S&P 500 Futures Daily Renko chart. It closed at 4,098.12. That means the cash index is at 4108. The big question is who is buying, or who is not buying. Earlier, I thought 4080 for the Futures, and 4090 for the Cash, would be the top for this wave. Wrong.
Below is the S&P 500 Daily Futures Renko chart. At 4081, it looked tired, but still refused to correct. Maybe it is looking to break 4100 and then correct?
Below is the S&P 500 JUNE FUTURES daily chart. Each box is 6 points. On 3/15/2021, the S&P 500 June Futures was at 3954, and the RSI was at 89. It climbed up another 18 points before the correction set in. On 4/2/2021, the index was at 4062, and the RSI was at 89. It seems we may see the June Futures hit the high of 4080 today, which means the cash index may hit 4090.
S&P500 broke above 4000 today. Below is the daily chart with the Parabolic SAR indicator. Looking back at the previous 3 times when S&P 500 broke the all time high, we could see a similar pattern.
On 12/28/2020, the Parabolic SAR turned green. The high on that day was 3740. On 1/8/2021, it reaches the all time high then. It was 3826. From 3740 to 3826, it was a 2.3% increase. It took 9 trading days to achieve.
On 2/4/2021, the Parabolic SAR turned green. The high on that day was 3871. On 2/16/2021, it reaches the all time high then. It was 3950. From 3871 to 3950, it was a 2.04% increase. It took 8 trading days to achieve.
On 3/9/2021, the Parabolic SAR turned green. The high on that day was 3903. On3/17/2021, it reaches the all time high then. It was 3983. From 3903 to 3983, it was a 2.05% increase. It took 7 trading days to achieve.
If it continues this pattern, the projected high would be 4062 to 4072. It might reach the target next week or the following week.
Below is the S&P 500 Futures hourly Renko chart. The RSI is sitting at around 70. Based on the past performance, the index might be able to go up another 20+ points from here depending on the momentum before taking a breather. The projected high looks like somewhere between 3998 and 4020 for Futures. Then, it might retrace 20 to 30 points before moving up again.
On the daily Renko chart, the move up would be even more impressive. The projected high looks like somewhere between 4080 and 4120 for Futures.
