E-mini Russell 2000 Index (TF) Futures Technical Analysis – May 26, 2016 Forecast

June E-mini Russell 2000 Index futures are called higher based on the pre-market trade. Today will be all about momentum and whether there is enough upside momentum to take out the next resistance on the way to the next two main tops.

Based on the current price at 1142.80, the first upside target is the downtrending angle at 1144.40. If this buying spree continues then look for the rally to extend into perhaps the April 28 main top at 1154.40.

A failure to take out and sustain the rally over 1142.80 will signal the presence of sellers. This could encourage profit taking which could drive the market into the long-term downtrending angle at 1134.40.

Crossing to the bearish side of the angle at 1134.40 will indicate the selling is getting stronger. This could trigger an acceleration into the nearest uptrending angle at 1122.70.

Watch the price action and read the order flow at 1144.40 today. Trader reaction to this angle will tell us if the buying is getting stronger or if profit-takers are showing up.