E-mini Russell 2000 Index (TF) Futures Technical Analysis – November 10, 2015 Forecast

December E-mini Russell 2000 Index futures are trading lower shortly before the cash market opening. The market is currently attempting to follow-through to the downside, following yesterday’s sharp break.

The index also formed a potentially bearish closing price reversal top. This could lead to the start of a 2 to 3 correction into the nearest retracement zone, but not necessarily a change in trend.

The main range is 1134.90 to 1201.20. Its retracement zone at 1168.05 to 1160.20 is the primary downside target.

Based on Monday’s close at 1180.40, the key level to watch today is the major 50% level at 1180.60. Trader reaction to this level should determine the direction of the market today.

A sustained move under 1180.60 will indicate the presence of sellers. The first target is yesterday’s low at 1176.90. A trade through this level will confirm the closing price reversal top.

A break through 1176.90 should lead to a test of the major uptrending angle at 1174.90. This angle is also a trigger point for the start of an acceleration to the downside.

Taking out 1174.90 with conviction could lead to a test of the primary downside target and retracement zone at 1168.05 to 1160.20.

A sustained move over 1180.60 will indicate the presence of buyers. The first target is a steep downtrending angle at 1185.20. This is a potential trigger point for a possible breakout rally into a pair of angles at 1193.20 and 1197.20.

Watch the price action and read the order flow at 1180.60 today. Trader reaction to this level will tell us whether the bulls or the bears are in control.