E-mini Russell 2000 Index (TF) Futures Technical Analysis – October 14, 2014 Forecast
December E-mini Russell 2000 Index futures posted another lower-low, lower-close on Monday, but the selling pressure wasn’t as impressive as it was for the other major indices. As mentioned yesterday, if the indices are going to turn higher, then the move is likely to start with the Russell 2000 index.
Traders should have an exit strategy in place if short because getting caught in a reversal to the upside could be expensive.
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The daily chart indicates there is plenty of room to the downside with 1017.70 the next likely target. Although the index closed lower, it did finish close enough to the previous day’s close to suggest the short-covering may have already started.
Overcoming the previous main bottom at 1057.60 will signal the start of short-covering. The first resistance angle drops in at 1066.20, followed by angles at 1081.80 and 1093.50.
Watch the order flow and price action today for signs of bottoming and have an exit strategy because a big short-covering rally is coming and you could give back a lot of profits if caught on the wrong side of a retracement.