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

June E-mini Russell 2000 Index futures are called lower shortly before the cash market opening. Sellers have been coming in for four days, triggering a shift in momentum to the downside and signaling a change in investor sentiment. The catalyst behind the move is concern about an early rate hike by the Fed.

The main trend is up according to the daily swing chart. However, momentum has been to the downside since the 1099.60 main top on March 21.

The main retracement zone is 1077.10 to 1051.90. The index is currently trading inside this zone. It is controlling the longer-term direction of the market.

The intermediate range is 997.10 to 1099.60. Its retracement zone is 1048.30 to 1036.20. This zone is the next downside target.

The short-term range is 1046.60 to 1099.60. Its retracement zone at 1073.10 to 1066.80 was the first downside target. It is currently being tested.

Based on yesterday’s close at 1071.50 and the early price action, the direction of the market today is likely to be determined by trader reaction to the cluster of numbers at 1066.80, 1066.60 and 1065.20. This area is a potential trigger point for a steep sell-off.

Taking out 1065.20 could trigger the start of an acceleration to the downside with the next targets a pair of 50% levels at 1051.90 and 1048.30.

Holding above 1066.80 will signal the presence of buyers. This could trigger a rally into a 50% level at 1073.10 and a steep downtrending angle at 1075.60.

Look for a strong downside bias today if 1065.20 fails as support. This is a major angle. Look for an upside bias on as sustained move over 1066.80.

The way of least resistance is down today. Any rallies are likely to be labored.