E-mini Russell 2000 Index (TF) Futures Technical Analysis – February 24, 2014 Forecast

March E-mini Russell 2000 Index futures are called better this morning. The index is holding above a downtrending angle t 1160.30, but below a downtrending angle from the 1181.30 top at 1170.80 today. A failure to hold 1160.30 could trigger a break to a pivot price at 1154.20. Taking out 1170.80 with conviction will set the index up for a test of the contract high at 1181.30.

The tone of the market today should be determined by whether buyers can successfully defend 1160.30. The short-term range is 1141.00 to 1167.20. This creates a 50% level or pivot price at 1154.20. Taking out this level with conviction will be a sign that upside momentum is slowing.

The daily chart indicates there is plenty of room to the downside with the nearest support a minor bottom at 1141.10.

The key to sustaining the current rally is whether there will be enough volume to drive this market to the contract high today. Upside momentum may be slowing, however, there is still no sign that sellers are coming in with conviction. Since the current rally represents a prolonged move in terms of price and time, traders should continue to watch for a potential rally ending closing price reversal top.