E-mini Russell 2000 Index (TF) Futures Technical Analysis – April 2, 2015 Forecast

June E-mini Russell 2000 Index futures are trading lower shortly before the cash market opening. Volume is light as traders prepare for tomorrow’s holiday and release of the U.S. Non-Farm Payrolls data for March. This trend could continue throughout the session since the stock market will be closed tomorrow.

The main trend is up on the daily chart, but the price action this week suggests a potentially bearish secondary lower top may be forming.

The short-term range is 1265.20 to 1220.10. Its retracement zone at 1242.70 to 1248.00 has essentially held the market in a tight range the last three days. 

Additional resistance is being provided by a downtrending angle from the 1265.20 top. This angle is at 1249.20. This angle is also a trigger point for a breakout rally into 1257.20. This is the last angle before the main top at 1265.20.

On the downside, there is a support cluster formed by a pair of uptrending angles and a 50% level. This area is 1232.80, 1232.00 and 1229.00. This is the best downside target. This area is very important to the long-term structure of the market.

The tone of the market today will be determined by trader reaction to 1248.00 to 1242.70. Look for a bullish tone to develop on a sustained move over 1248.00 and a bearish tone if 1242.70 is taken out with conviction.

Because of the thin trading conditions, be careful buying strength and selling weakness. You have to watch out for volatility traps today.