E-mini Russell 2000 Index (TF) Futures Technical Analysis – May 25, 2015 Forecast

June E-mini Russell 2000 Index futures are trading slightly lower shortly ahead of the futures market opening. The major U.S. exchanges are closed today and the futures markets close early so look for light volume, but be prepared for volatile swings.

The main trend is down on the daily swing chart. The main range is 1277.20 to 1207.10. Its retracement zone is 1242.10 to 1250.40. During the pre-market session, the index straddled its upper or Fibonacci level at 1250.40. Trader reaction to this level will likely determine the direction of the market today. Based on the pre-market price action, the index is expected to open on the weak side of the Fib level, giving it an early downside bias.

On the upside, overcoming 1250.40 will signal the presence of buyers. A sustained move over this level could trigger a rally into an uptrending angle at 1259.10. Overtaking this angle will put the market in a strong position with 1263.20 the next target.

The market could open up to the downside on a sustained move under a downtrending angle at 1249.20. This could trigger an acceleration to the downside with the 50% level at 1242.10 the next target.

Watch for a technical bounce on the first test of 1242.10, but be prepared for another sharp sell-off if this price fails with the best target a support cluster at 1233.70 to 1233.10.

Look for a bullish tone to develop over 1250.40 and a bearish tone under 1249.20. If buying strength or selling weakness, make sure there is size on the bids and offers or the moves will fail. Light volume, may mean small moves today.