E-mini Russell 2000 Index (TF) Futures Technical Analysis – February 9, 2016 Forecast

March E-mini Russell 2000 Index futures are trading slightly lower shortly before the cash market opening. The index is posting an inside move which suggests investor indecision and impending volatility.

The main trend is down according to the daily swing chart. Yesterday, the main trend was reaffirmed when 953.70 was taken out. However, there wasn’t much of a follow-through break with the index stopping at 952.90. The main trend will turn up on a trade through the swing top at 1035.80.

Today is the seventh day down from the 1035.80 main top so the session will begin with the market in the window of time for a potentially bullish closing price reversal bottom.

Based on yesterday’s close at 970.00, the direction of the market today is likely to be determined by trader reaction to the steep downtrending angle at 979.80.

A sustained move under 979.80 will indicate the presence of sellers. This could create enough downside momentum to challenge yesterday’s low at 952.90. This level is also a trigger point for an acceleration to the downside with the next potential target a long-term downtrending angle at 928.00. Crossing to the bearish side of this angle will put the index in an extremely weak position.

Crossing to the strong side of the downtrending angle at 979.80 will signal the presence of buyers. The daily chart is open to the upside so overtaking this angle could start to generate strong upside momentum. The next upside objective is a downtrending angle at 1007.80.

Watch the price action and read the order flow at 979.80 today if tested. Trader reaction to this angle will tell us if the bulls or the bears are in control.