E-mini Russell 2000 Index (TF) Futures Technical Analysis – May 14, 2014 Forecast

June E-mini Russell 2000 Index futures are called lower this morning. The downslide actually started on Tuesday when there was no follow-through to the upside, following the previous day’s surge.

The main trend is down on the daily chart. The main trend will turn up when 1136.10 is taken out. The new short-term range is 1087.10 to 1135.10, making its retracement zone at 1111.10 to 1105.40 the next downside target. If the market is going to turn higher, it is likely to start in this zone. Traders should watch the order flow to see if bids big enough to reverse the sell-off begin to show up.

The main downtrending resistance angle is 1135.10 today. This is the same price as the high of the week. Overnight, the index opened on the weakside of a pair of downtrending angles at 1120.10 and 1135.10. These two angles are the nearest resistance points based on the overnight price action.

The nearest uptrending angle rises to 1111.10 today, followed by 1099.10 and 1093.10. The first angle forms a possible support cluster with the 50% level at the same price. This cluster is the most important price today.

If buyers can come into defend the uptrend at this point then look for a turnaround to the upside by the end of the session. A failure to hold 1111.10 on the other hand will put the market in a bearish position throughout the session.