E-mini Russell 2000 Index (TF) Futures Technical Analysis – December 3, 2015 Forecast

December E-mini Russell 2000 Index futures are called higher based on the pre-market trade. The market continued to follow-through to the downside, following the closing price reversal top at 1208.00 on November 30, but the selling came to a halt at 1189.10.

The main trend is up according to the daily swing chart, but downside momentum appears to be shifting to the downside. The new short-term range is 1208.00 to 1189.10. Its 50% level or pivot is 1198.60. This price is likely to control the direction of the market today.

A sustained move under 1198.60 will indicate the presence of sellers. The first target is a downtrending angle at 1196.00. This is followed by yesterday’s low at 1189.10. The first major downside target is a long-term uptrending angle at 1182.00.

The next major target is the long-term 50% level at 1180.60. This level is also a trigger point for an acceleration to the downside. The primary downside target of the developing move is 1169.00 to 1159.80.

A sustained move over 1198.60 will signal the presence of buyers. The potential targets are downtrending angles at 1202.00, 1205.00 and 1206.50. The latter is the last potential resistance angle before the 1208.00 main top. Another target is the major long-term Fibonacci level at 1206.00.

Overtaking the resistance levels will take some work, but a trade through 1208.00 will not only negate the closing price reversal top chart pattern, but it could trigger an acceleration to the upside.

Watch the price action and read the order flow at 1199.60. Trader reaction to this pivot will tell us whether the bulls or the bears are in control.