E-mini Russell 2000 Index (TF) Futures Technical Analysis – November 17, 2015 Forecast

December E-mini Russell 2000 Index futures are trading better shortly before the cash market opening. The market followed through to the upside, following yesterday’s closing price reversal bottom, giving the index an early upside bias.

The main trend is down according to the daily swing chart, but momentum shifted to the upside with yesterday’s reversal bottom.

Shortly before the regular session opening, the index is straddling a steep downtrending angle. It comes in at 1153.20 today. Trader reaction to this angle will determine the direction of the market today.

The short-term range is 1201.20 to 1130.00. A sustained move over 1153.20 will signal the presence of buyers. This could trigger a rally into the short-term retracement zone at 1165.60 to 1174.00. This zone is followed closely by a downtrending angle at 1177.20.

Since the main trend is down, sellers are going to come in on a test of the 1165.60 to 1174.00 retracement zone in an effort to produce a potentially bearish secondary lower top. Buyers are going to try to overtake the retracement zone.

A sustained move under the angle at 1153.20 will signal the presence of sellers. This could encourage further selling into the long-term uptrending angle at 1143.20. This is followed by the major 50% level at 1137.20, the closing price reversal bottom at 1130.00 and the Fibonacci level at 1122.10.

Watch the price action and read the order flow at 1153.20 today. Trader reaction to this angle will tell us whether the bulls or the bears are in control.