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E-mini Russell 2000 Index (TF) Futures Technical Analysis – February 8, 2016 Forecast

By:
James Hyerczyk

March E-mini Russell 2000 Index futures sold-off on Friday, making 1035.80 a new main top. However, the selling pressure wasn’t strong enough to take out

Daily March E-mini Russell 2000 Index

March E-mini Russell 2000 Index futures sold-off on Friday, making 1035.80 a new main top. However, the selling pressure wasn’t strong enough to take out a key short-term retracement zone. Trader reaction to this zone will likely determine the near-term direction of the market.

Daily March E-mini Russell 2000 Index
Daily March E-mini Russell 2000 Index

The main trend is down according to the daily swing chart. A trade through 1035.80 will turn the main trend o up according to the daily swing chart. A trade through 953.70 will reaffirm the downtrend.

The main range is 953.70 to 1035.80. Its retracement zone is 994.80 to 985.00. The market has been straddling this zone for several days.

Based on Friday’s close at 985.40, the direction of the market today is likely to be determined by trader reaction to the short-term Fibonacci level at 985.00.

A sustained move over 985.00 will indicate the presence of buyers. The first upside objective is a downtrending angle at 987.80. This is followed closely by the short-term 50% level at 994.80.

The daily chart opens up to the upside on a sustained move over 994.80 with the next major targets coming in at 1005.70 and 1011.80.

A sustained move under 985.00 will signal the presence of sellers. The first downside target is an uptrending angle at 979.70.

The daily chart opens up to the downside under 979.70 with the next target angle coming in at 966.70. This is the last potential support angle before the 953.70 main bottom.

Watch the price action and read the order flow at 985.00 today. Trader reaction to this level will tell us if the bulls or the bears are in control.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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