E-mini Russell 2000 Index (TF) Futures Analysis – February 12, 2013

The March E-mini Russell 2000 Index is trading a little lower shortly ahead of the opening. On Monday, the market inched up to a new year for the year at 913.70 without much fanfare. This could be a sign that the rally is running out of steam.

Tonight President Obama will deliver the State of the Union address. He will definitely talk about the economy. This may keep investors on the sidelines today or encourage some to pare their positions.

Technically, the main trend is up. The main trend turns to down on a break through the last swing bottom at 891.10. An uptrending Gann angle at 907.10 is providing support, having been tested successfully several times over the past two weeks.

A failure to hold the uptrending Gann angle will be a sign of weakness. This should put pressure on the market. Based on the short-term range of 891.10 to 913.70, a key pivot price has formed at 902.40. A test of this price could draw the attention of buyers, but a move under it will probably be a strong sign that prices are headed lower.