E-mini Russell 2000 Index (TF) Futures Technical Analysis – February 29, 2016 Forecast

March E-mini Russell 2000 Index futures are trading slightly lower during the pre-market session. On Friday, the index closed higher while the other major indices reversed to the downside. This divergence may be a sign that the market is near a top.

The main trend is up according to the daily swing chart. The index is up twelve days from its recent bottom, putting it in the window of time for a closing price reversal top.

The main upside target is a 50% level at 1048.10. The primary target on the downside is a retracement zone at 1016.80 to 1011.20.

Based on the close at 1035.50 and the earlier price action, the direction of the market today is likely to be determined by trader reaction to the steep uptrending angle at 1032.20.

A sustained move over this angle will indicate the presence of buyers. This could create enough upside momentum to challenge Friday’s high at 1040.50. This is followed by 1048.10.

A sustained move under 1032.20 will signal the presence of sellers. The daily chart is wide open to the downside under this angle. This could trigger an acceleration to the downside with the next targets 1016.80 and 1011.20.

Watch the price action and read the order flow at 1032.20. Trader reaction to this angle will tell us if the bulls or the bears are in control today.