E-mini Russell 2000 Index (TF) Futures Technical Analysis – August 21, 2014 Forecast

On Wednesday, September E-mini Russell 2000 Index futures close below an uptrending support angle and a key 50% level, suggesting the selling may be greater than the buying at current price levels. The weakness in the Russell may be a sign that long investors in the other indices are beginning to get nervous and are selling the Russell Index as a hedge against a correction.

The main range is 1210.70 to 1103.10. The retracement zone formed by this range at 1156.90 to 1169.70 is currently the best resistance area.

A new short-term range has formed between 1103.10 and 1103.10. Its retracement zone at 1133.10 to 1126.00 is the next potential downside target.

The key support angle moves up to 1159.10 today. The close under this level indicates developing weakness. This is another sign the index is topping. The daily chart indicates there is plenty of room to the downside with 1131.10 a potential near-term target.

The tone of the day will likely be determined by investor reaction to the 50% level at 1156.90.