E-mini Russell 2000 Index (TF) Futures Technical Analysis – July 25, 2016 Forecast

September E-mini Russell 2000 Index futures are trading lower shortly before the cash market opening. Earlier in the session, the market took out the last main top at 1212.40, signaling a resumption of the uptrend. However, there was very little follow-through to the upside.

A trade through 1194.70 will turn the main trend to down according to the daily swing chart. However, we could see weakness even before that takes place. A close below 1209.90 will produce a potential bearish closing price reversal top. This could lead to the start of a 2 to 3 day correction.

Based on the earlier price action, the direction of the market today is likely to be determined by trader reaction to the uptrending angle at 1210.70.

A sustained move over 1210.70 will indicate the presence of buyers. This could trigger a retest of the intraday high at 1213.40. If the buying is strong enough to take out this high then look for the rally to extend. The next major upside target is the August 8, 2015 main top at 1224.80.

A sustained move under 1210.70 will signal the presence of sellers. The daily chart is open to the downside with the first target is short-term pivot at 1204.00. This is followed closely by another uptrending angle at 1202.70.

The daily chart opens up to the downside under 1202.70 with the next target the main bottom at 1194.70. The trend will change to down on a trade through this bottom. This is another trigger point for an even steeper break.

Look for an upside bias on a sustained move over 1210.70 and a downside bias under hit. Near the close, the key number to watch will be 1209.90. A finish under this level will produce a potentially bearish closing price reversal top.