E-mini Russell 2000 Index (TF) Futures Technical Analysis – June 8, 2016 Forecast

June E-mini Russell 2000 Index futures are trading slightly lower during the pre-market session. It is also trading on the weak side of a steep uptrending angle which is an early indication the momentum is shifting to the downside.

The main trend is up according to the daily swing chart. The market is in no danger of turning the main trend to down, but the index is still in the window of time to produce a potentially bearish closing price reversal top.

The minor range is 1153.40 to 1183.60. It retracement zone at 1168.50 to 1164.90 is the primary downside target today.

The main range is 1082.70 to 1183.60. Its retracement zone at 1133.10 to 1121.20 is another downside target.

Based on the close at 1179.40 and the early price action, the direction of the market today is likely to be determined by trader reaction to the uptrending angle at 1186.70. This angle, moving up at a rate of 8 points per day from the 1082.70 main bottom, has guided the index higher since May 19.

A sustained move under 1186.70 will indicate the presence of sellers and a possible shift in investor sentiment and market momentum. This could drive the market into the short-term retracement zone at 1168.50 to 1164.90.

A failure at 1164.90 could fuel an acceleration into the minor bottom at 1153.40. This is another trigger point for a steep break with the nearest target angle coming in at 1134.70.

Overcoming 1186.70 will signal the presence of buyers. This will put the index in a bullish position and could drive the market into the December 1, 2015 main top at 1195.60.

Look for a downside bias on a sustained move under 1186.70 and an upside bias over this angle.