E-mini Russell 2000 Index (TF) Futures Technical Analysis – March 9, 2015 Forecast

March E-mini Russell 2000 Index futures are called lower on the opening. The market sold-off sharply on Friday. The selling pressure was strong enough to pierce the 1214.30 main bottom. The main trend did turn down on this move, but the follow-through was weak because the index had reached a 50% level.

The main range is 1185.90 to 1243.60. Its main range is 1214.75 to 1208.00. The upper or 50% level at 1214.75 essentially stopped Friday’s sell-off. The tone of the market today will be determined by trader reaction to 1214.75.

A sustained move through 1214.75 could trigger an acceleration into the 61.8% level at 1208.00. This is followed by uptrending angles at 1204.90 and 1198.50.

If 1214.75 holds as support then look for a possible short-covering rally into 1223.60 to 1223.90. Since the main trend is down, sellers are likely to show up inside this zone. Overtaking 1223.90, however, could trigger a further rally into the next angle at 1233.60.

Watch the price action and order flow at 1214.75. This should tell us whether the sell-off on Friday was real shorting, or just an overreaction to the stronger-than-expected U.S. Non-Farm Payrolls report.