E-mini Russell 2000 Index (TF) Futures Technical Analysis – August 7, 2015 Forecast

September E-mini Russell Index futures are trading flat ahead of the release of today’s U.S. Non-Farm Payrolls report. Traders expect the report to show the economy added 222K new jobs in July. A substantially higher number is likely to be bearish for stocks. A substantially lower number should be bullish. Remember what the lower-than-expected ADP number did on Wednesday?

The first support today is an uptrending angle at 1206.70. This is the last major angle before the main bottom at 1198.70 and the March 10 main bottom at 1197.70. Taking out these levels will signal a resumption of the downtrend with no particular price target in sight.

The first level to overcome is a tight price cluster at 1214.70 to 1215.60. This could trigger a move into the 50% level at 1220.80.

The daily chart opens up over 1220.80 with the next target an uptrending angle at 1230.70. If the main range remains 1274.20 to 1198.70 then its retracement zone at 1236.50 to 1245.40 becomes the primary upside target. A downtrending angle passes through this zone at 1242.20, making it a valid target also.

Based on the current price at 1209.80, look for an upside bias on a sustained move over 1215.60 and a downside bias to develop under 1206.70.

 Although there is no identifiable support under 1198.70, be careful selling weakness under this level because of the possibility of a snapback rally. Often the index breaks sharply on a bearish number before the market opens then rallies after the cash market opening on strong short-covering. Investors don’t like to chase a market lower.