E-mini Russell 2000 Index (TF) Futures Technical Analysis – August 21, 2015 Forecast

September E-mini Russell 2000 Index futures are trading slightly better during the pre-market session. Earlier in the session, the index followed through to the downside following Thursday’s steep sell-off. The index found support on a major 50% level, triggering a rebound rally and recovering all of the early session losses.

Today’s first downside target is a major 50% level at 1158.30. This level was tested earlier in the session when the market traded down to and recovered this level. The 50% level is also a potential trigger point for another steep sell-off with the major Fibonacci level at 1126.70 the next likely target.

A sustained move over the 50% level at 1158.30 will signal the presence of buyers. The first upside target is a downtrending angle at 1170.20. Additional downtrending angle targets come in at 1176.80 and 1182.80.

The daily chart opens up over 1182.80. Taking out this angle could trigger an acceleration to the upside with 1200.80 another target.

Watch the price action and read the order flow at 1158.30. This will tell us whether the bulls or the bears are in control. A sustained move under this price could trigger a steep break into 1126.70. A sustained move over 1158.30 could lead to a labored rally because of the number of potential resistance targets.