E-mini Russell 2000 Index (TF) Futures Technical Analysis – May 4, 2016 Forecast

June E-mini Russell 2000 Index futures are called lower shortly before the cash market opening. The market is following through to the downside following yesterday’s sharp sell-off.

The main trend is down according to the daily swing chart. It turned down on Tuesday when the market took out the last swing bottom at 1117.60.

The short-term range is 1083.50 to 1154.40. Its retracement zone is 1118.90 to 1110.60. The index is currently straddling this zone.

The main range is 945.20 to 1154.40. Its retracement zone at 1049.80 to 1025.10 is the primary downside target.

Based on the current price 1112.00, the direction of the market today is likely to be determined by trader reaction to the short-term Fibonacci level at 1110.60.

A sustained move under 1110.60 will indicate the selling is getting stronger. This could trigger an acceleration to the downside with the next major target the April 7 main bottom at 1083.50.

A sustained move over 1110.60 will signal the presence of buyers. This could create enough upside momentum to fuel a rally into the 50% level at 1119.90. Overtaking this level will indicate the buying is getting stronger.

One upside objective is 50% of the break from 1154.40. At this time, this number is 1137.20.

Watch the price action and read the order flow at 1110.60 today. Trader reaction to this level will tell us if the buyers are regaining control or if the market is getting ready to accelerate to the downside.