E-mini Russell 2000 Index (TF) Futures Technical Analysis – August 19, 2015 Forecast

September E-mini Russell 2000 Index futures are expected to open lower based on the pre-market session. Helping to drive the market lower was the release of a weaker-than-expected U.S. consumer inflation report. Later today at 2:00 p.m. ET, the Fed will release its latest minutes. This could trigger a volatile response.

The main trend is down on the daily chart. The main range is 1242.80 to 1185.20. Its retracement zone is 1214.00 to 1220.80. This zone was rejected on Tuesday when the index formed a closing price reversal top at 1224.80.

The new short-term range is 1185.20 to 1224.80. Its retracement zone at 1205.00 to 1200.30 is today’s primary downside target.

The first key uptrending angle comes in at 1205.20. This angle forms a support cluster with the 50% level at 1205.00. Trader reaction to this area will determine the direction of the market today.

A sustained move over 1205.00 will signal the presence of buyers. The first upside objective is 1214.00 to 1216.80. The daily chart could expand above 1216.80 with the next targets 1220.80, 1224.80 and 1226.20.

A sustained move under 1205.00 will signal the presence of sellers. This could trigger a move into the Fibonacci level at 1200.30. The daily chart opens up to the downside under this level with potential targets at 1195.20 and 1190.20. The latter is the last potential support angle before the 1185.20 main bottom.

Watch the price action and read the order flow at 1205.20 to 1205.00. Trader reaction to this area will tell us whether the bulls or the bears are in control.