E-mini Russell 2000 Index (TF) Futures Technical Analysis – May 24, 2016 Forecast

June E-mini Russell 2000 Index futures are expected to open higher based on the pre-market trade. Earlier in the session, the index took out yesterday’s low and attempted to break hard, but the selling stopped on an uptrending angle. The price action indicates that buyers may make an attempt at a breakout rally shortly after the opening.

The main trend is down according to the daily swing chart. A trade through 1127.30 will turn the main trend to up.

The short-term range is 1127.30 to 1082.70. Its 50% level or pivot is 1105.00. This price is controlling the short-term direction of the market.

The main range is 1154.40 to 1082.70. Its retracement zone at 1118.60 to 1127.00 is the primary upside target.

Since the trend is down, sellers may come in to defend the trend on a test of the retracement zone.

Based on the current price at 1113.90, the first upside target is a price cluster at 1118.40 to 1118.60. Look for selling on the first test of this area. Look for an acceleration to the upside if 1118.60 is taken out. The first targets are a Fibonacci level at 1127.00 and a main top at 1127.30.

If the buying is strong enough to take out 1127.30 then the trend will change to up and the index could accelerate into 1136.40.

The inability to overcome 1118.40 to 1118.60 will signal the presence of sellers. This could lead to more short selling or long liquidation. The first target is the uptrending angle at 1106.70. This angle stopped the rally earlier, but if it fails, we’re going to 1105.00.

A failure at 1105.00 opens up the index for a steep break into the next uptrending angle at 1094.70.

Look for an upside bias to develop over 1118.60 and a downside bias under 1106.70. Watch for a choppy, two-sided trade if prices remain inside these angles.