E-mini Russell 2000 Index (TF) Futures Technical Analysis – November 26, 2014 Forecast

December E-mini Russell 2000 Index futures took out the previous main top at 1190.50, reaching a high of 1193.00. The move reaffirmed the uptrend on the daily chart and made 1142.20 a new main bottom. A trade through this price will turn the main trend to down.

The most important uptrending angle today comes in at 1188.20. Yesterday’s close at 1185.70 was below this price level, giving it a slight downside bias. Overcoming this angle will put the market in a bullish position that could lead to an eventual test of the July 1 top at 1205.40.

Look for sellers to come in if the buying isn’t strong enough to overtake 1188.20. This could trigger the start of a retracement.

If 1193.00 holds as the high then a range will form with the 1148.20 bottom. The retracement zone of this range at 1170.60 to 1165.30 will be the main downside target.

A pair of uptrending angles at 1168.20 and 1166.60 passes through the retracement zone, making it a valid downside target.

The tone of the market today will be determined by whether investors can overcome the steep uptrending angle at 1188.20. A sustained move over this angle will likely set up a drive to 1193.00. Overtaking this level could mean an eventual test of 1205.40.

A failure to overcome 1188.20 could lead to profit-taking and aggressive shorting with 1170.60 the minimum downside target.

Although today is a full trading session, watch the volume. Low volume will make it difficult to sustain upside breakouts especially since Thursday is a market holiday and Friday is a shortened trading session.