E-mini Russell 2000 Index (TF) Futures Technical Analysis – February 24, 2016 Forecast

March E-mini Russell 2000 Index futures are trading flat after posting a lower close and an inside move on Tuesday. The price action indicates impending volatility, trader indecision and a possible shift in investor sentiment.

The main trend is down according to the daily swing chart. A trade through 1035.80 will turn the main trend to up according to the daily swing chart.

The short-term range is 936.20 to 1024.00. Its retracement zone at 980.10 to 969.70 is the primary downside target.

Based on Tuesday’s close at 1009.80 and the early price action, the direction of the market today will likely be determined by trader reaction to the steep uptrending angle at 1008.20.

A sustained move over 1008.20 will indicate the presence of buyers. This could generate enough upside momentum to fuel a rally into the downtrending angle at 1017.80. This is followed by the high at 1024.00 and the next downtrending angle at 1026.80. This is the last potential resistance angle before the 1035.80 main top.

A sustained move under 1008.20 will signal the presence of sellers. The first target is a downtrending angle at 999.80. Crossing to the weak side of the angle at 999.80 will put the index in a bearish position.

The daily chart also opens up to the downside under 999.80 so be prepared for an acceleration to the downside. The next major target under this angle comes in at 980.10.

Watch the price action and read the order flow at 1008.20 today. Trader reaction to this angle will tell us if the bulls are coming in to support the market or if the bears are taking control.