E-mini Russell 2000 Index (TF) Futures Technical Analysis – November 20, 2015 Forecast

December E-mini Russell 2000 Index futures are trading flat during the pre-market session. The index is also holding yesterday’s range which indicates trader indecision and impending volatility.  On Thursday, the index posted a minor reversal top, closing below a 50% level after a successful test of a Fibonacci level. This could be an early sign of a secondary lower top.

The main trend is down according to the daily swing chart. The trend turned down on Monday when the index took out the 1134.90 main bottom.

The main range is 1201.20 to 1130.00. Its retracement zone is 1165.60 to 1174.00. Since the main trend is down, sellers stepped in to stop yesterday’s rally inside the retracement zone. The index traded into the upper or Fib level at 1174.00, stopping at 1174.40 before closing under the lower or 50% level at 1165.60.

Based on the close at 1163.70, the direction of the market today is likely to be determined by trader reaction to 1165.60.

A sustained move under 1165.60 will indicate the presence of sellers. The first downside objective is an uptrending angle at 1162.00. The daily chart opens up to the downside under this angle with the next target a short-term 50% level at 1152.20. This is followed by another uptrending angle at 1146.00.

A sustained move over 1165.60 will signal the presence of buyers. This could create enough upside momentum to challenge the Fib level at 1174.00 and yesterday’s high at 1174.40.

Taking out 1174.40 with conviction could lead to an acceleration to the upside with the next target a potential resistance cluster at 1180.60 to 1183.20.

For those following the angles, based on the close at 1163.70, the direction of the market today is likely to be determined by trader reaction to a downtrending angle at 1165.20.

Watch the order flow at 1165.20 and 1165.60 today. Look for a bullish tone to develop on a sustained move over 1165.60 and a bearish tone to develop on a sustained move under 1165.20.