Many traders ask themselves, when the S&P will make the next down-leg. Renko-chart indicates that it could be at 2870 or if stretched, at 3000. Indicators TSI and WT are also indicating that we have reached breaking levels. From my gut feeling I would guess that traders don't want to go with large positions into the weekend and a sell-off could start at Friday (Asia trading) going well towards middle of next week. What to watch is really: 1. Renko-chart and 2. candle types developping during the afternoon after which a descision for a short position into the weekend could be made or not.
Comment:
Things develop slower as expected, but I'm still looking for a suitable enty point for a short trade. Checking on Renko, I guess we have to go a bit above 2900. FIB-extensions on the last up-swing (see link) suggests the same level. Comming week might give a clue of the turning point. TSI is already weakening in its reflection to the up-side, though, WT is still strong relatively. Therefore, I believe it is better to wait for the entry of a short trade, because things are not cristal clear yet. There could be as well a short-long swing trap to flush out traders just around the turning point - watch out !