E-mini Russell 2000 Index (TF) Futures Technical Analysis – August 3, 2015 Forecast

September E-mini Russell 2000 Index futures finished higher on Friday. The rally completed a retracement of the recent break. Trader reaction to this zone will set the tone of the market today and perhaps over the near-term. The formation of a secondary lower top inside this zone will be a sign of increasing selling pressure.

The main trend is down according to the daily swing chart. The main range is 1274.20 to 1198.70. Its retracement zone is 1236.50 to 1245.40. Since the trend is down, sellers are likely to come in to defend the trend inside this zone.

A sustained move over the upper or Fibonacci level at 1245.40 could trigger a rally into a downtrending angle at 1250.20. The daily chart opens up to the upside over this angle with 1262.20 the next target.

A sustained move under the lower or 50% level at 1236.50 will signal the presence of sellers. The first target is a steep uptrending angle at 1230.70. Crossing below a downtrending angle at 1226.30 will mean the selling pressure is getting stronger. This could trigger a break into 1214.70.

If the index chops around between 1236.50 and 1245.40 then this will indicate trader indecision. Read the order flow and price action and try to avoid getting chopped up into the retracement zone. Wait for a clear buy or sell signal before taking a position.