E-mini Russell 2000 Index (TF) Futures Technical Analysis – May 30, 2016 Forecast

The June E-mini Russell 2000 Index futures market is closed Monday because of the U.S. Memorial Day bank holiday so we’ll take a look at the weekly chart which should offer you guidance all week especially when combined with the daily chart analysis.

The main trend is up according to the weekly swing chart. A trade through 1154.40 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will turn down on a trade through the 1082.70 main bottom.

The main range is 1195.60 to 945.20. Its retracement zone is 1070.40 to 1099.90. The market found support inside this retracement zone at 1082.70, two weeks ago. This zone should be consider support.

Based on the close at 1150.10, the direction of the market this week is likely to be determined by trader reaction to the pair of angles at 1146.70 and 1145.60.

Holding above the uptrending angle at 1146.70 will signal the presence of buyers. Taking out the swing top at 1154.40 will indicate the buying is getting stronger. This move will change the main trend to up and could trigger an acceleration into the next downtrending angle at 1170.60. This is the last potential resistance angle before the 1195.60 main top.

A sustained move under the long-term downtrending angle at 1145.60 will signal the presence of sellers. This move would signal a loss of upside momentum and could possibly lead to a break into the next uptrending angle at 1114.70.

The angle at 1114.70 is followed by a potential support cluster at 1099.90 to 1098.70.

The weekly chart opens up to the downside under 1098.70 with the next target the main bottom at 1082.70. A trade through this bottom will change the main trend to down. This could lead to a challenge of the major uptrending angle at 1073.20. This angle has guided the market higher since the week-ending February 12 so taking it out will signal a major shift in investor sentiment.