E-mini Russell 2000 Index (TF) Futures Technical Analysis – August 13, 2015 Forecast

September E-mini Russell 2000 Index futures are called better this morning based on the firm pre-market trade. The main trend is down according to the daily swing chart, but yesterday’s strong rebound rally has shifted the momentum to the upside.

The main range is 1242.80 to 1185.20. Its retracement zone at 1214.00 to 1220.80 is the primary upside target. Trader reaction to this zone will likely determine the tone of the market today and perhaps over the near-term.

The first target on the upside is the 50% level at 1214.00.  A sustained move over this price could trigger a surge into the Fibonacci level at 1220.80. This is the next potential trigger point for an upside breakout.

The next target over 1220.80 is a downtrending angle at 1224.80. This is also a trigger point for an acceleration to the upside with the next target a long-term downtrending angle at 1234.20.

The chart looks pretty clean to the upside so don’t expect it to grind. The angles indicate better-than-average volatility should be expected.

A failure to overcome the 50% level at 1214.00 will signal the presence of sellers. Crossing to the weak side of a downtrending angle at 1206.80 will indicate the selling is getting stronger.

 The next likely downside target under 1206.80 is another downtrending angle at 1194.20. This is the last support before the 1185.20 minor bottom.

Watch and read the price action at 1214.00 today. This will tell us whether the bulls or the bears are in control.