E-mini Russell 2000 Index (TF) Futures Technical Analysis – May 5, 2016 Forecast

June E-mini Russell 2000 Index futures are trading higher shortly before the cash market opening. The market could be consolidating inside a retracement zone ahead of Friday’s U.S. Non-Farm Payrolls report. Volume could be light today because many of the major traders are sitting on the sidelines ahead of the report.

The main trend is down according to the daily swing chart.

The main range is 1083.50 to 1154.40. Its retracement zone at 1119.00 to 1110.50 is currently being tested.

The short-term range is 1154.40 to 1106.40. Its retracement zone at 1130.40 to 1136.10 is the primary upside target today.

Based on yesterday’s close at 1110.60 and the early price action, the direction of the market today is likely to be determined by trader reaction to the downtrending angle at 1114.40.

A sustained move over 1114.40 will indicate the presence of buyers. This could create enough upside momentum to challenge the 50% level at 1119.00.

Overtaking 1119.00 will mean the buying is getting stronger with 1123.50 the next target. Crossing to the strong side of this angle is likely to fuel a rally into 1130.40.

A sustained move under 1114.40 will signal the presence of sellers. The first target is the Fib level at 1110.50. This is followed by yesterday’s low at 1106.40 and an uptrending angle at 1103.50.

The daily chart opens up under 1103.50 with the next target angle 1093.50. This is the last potential support angle before the 1083.50 main bottom.

Watch the price action and read the order flow at 1114.40 today. Trader reaction to this angle will tell us if the bulls or the bears are in control.