E-mini Russell 2000 Index (TF) Futures Technical Analysis – April 28, 2016 Forecast

June E-mini Russell 2000 Index futures are called lower shortly before the cash market opening. The index is also in a position to post a potentially bearish closing price reversal top which could lead to a 2 to 3 day break and a sizeable correction.

The main trend is up according to the daily swing chart. A trade through 1154.40 will signal a resumption of the uptrend. A move through 1117.60 will turn the main trend to down. A close below 1152.70 will form a closing price reversal top.

The short-term range is 1117.60 to 1154.40. Its retracement zone at 1136.00 to 1131.60 is the first downside target.

The main range is 1083.50 to 1154.40. Its retracement zone at 1116.75 to 1108.90 is the next key target zone.

Based on the current price at 1143.80, the direction of the market today is likely to be determined by trader reaction to the uptrending angle at 1143.50.

A sustained move over 1143.50 will indicate the presence of buyers. This could create enough upside momentum to challenge the next uptrending angle at 1149.80. This is followed by yesterday’s high at 1154.40 and another uptrending angle at 1155.50. Overtaking this angle will put the market in a bullish position.

A sustained move under 1143.50 will signal the presence of sellers. The daily chart is wide open to the downside under this angle so we could see a volatile break into the short-term 50% level at 1136.00. This is followed by the 61.8% level at 1131.60.

The daily chart is also wide open under 1131.60 with the next major target coming in at 1116.75.

Watch the price action and read the order flow at 1143.50 today. Trader reaction to this angle will tell us if the bulls have returned or if the bears are taking control. Remember, a close under 1152.70 will produce a potentially bearish closing price reversal top.