E-mini Russell 2000 Index (TF) Futures Technical Analysis – April 29, 2016 Forecast

June E-mini Russell 2000 Index futures are called lower based on the pre-market trade. The main trend is up according to the daily swing chart, but momentum may have shifted to the downside with the formation of a closing price reversal top on Thursday.

A trade through 1134.90 will confirm the closing price reversal top. This could trigger the start of a 2 to 3 day break.

Based on yesterday’s close at 1139.80 and the early price action, the direction of the market today will likely be determined by trader reaction to the support cluster at 1136.00 to 1135.60.

Taking out 1135.60 will signal the presence of sellers. This could trigger a break into the short-term Fibonacci level at 1131.60.

The daily chart begins to open up to the downside under 1131.60 with the next major target coming in at 1118.90. This is followed by the swing bottom at 1117.60. A trade through this bottom will change the main trend to down.

Holding above the short-term 50% level at 1136.00 will signal the presence of buyers. This could create upside momentum and short-covering with potential targets at 1147.50 and 1153.60.

Watch the price action and read the order flow at 1135.60 today. Treat this price like a pivot. Look for a downside bias if traders take out this level with conviction. An upside bias is likely to develop on a sustained move over it.