E-mini Russell 2000 Index (TF) Futures Technical Analysis – December 1, 2015 Forecast

December E-mini Russell 2000 Index futures are trading slightly better shortly before the cash market opening. On Monday, the index formed a potentially bearish closing price reversal top. This chart pattern hasn’t been confirmed but it could be indicating that the selling is greater than the buying at current price levels.

Based on yesterday’s close at 1195.90, the direction of the market is likely to be determined today by trader reaction to 1195.00.

A trade through 1195.00 will confirm the closing price reversal top. This could trigger the start of an acceleration to the downside since the next major support doesn’t come in until 1180.60. This is followed by an uptrending angle at 1174.00 today. If the selling pressure is strong enough then look for the start of a 2 to 3 day break. The primary downside target is the retracement zone at 1169.00 to 1159.80.

The inability to confirm the reversal top will indicate that buyers are still coming in to defend the uptrend. The first target is the major Fibonacci level at 1206.00. This is followed by the closing price reversal top at 1208.00. Taking out this level will negate the chart pattern. This could trigger a further rally into a steep uptrending angle at 1218.00. Crossing to the strong side of this angle will put the index in an extremely strong position.

Watch the price action and read the order flow at 1195.00 today. Trader reaction to this level will tell us whether the bulls or the bears are in control.