E-mini Russell 2000 Index (TF) Futures Technical Analysis – July 29, 2016 Forecast
September E-mini Russell 2000 Index futures finished slightly lower on Thursday while posting an inside move. The chart pattern indicates investor indecision and impending volatility.
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The main trend is up according to the daily swing chart. Despite the uptrend, the index is still in the window of time for a closing price reversal top. This would indicate the selling is greater than the buying at current price levels but not necessarily a change in trend. The trend will turn down on a trade through 1194.70.
Based on Thursday’s close at 1213.50, the nearest support angle comes in at 1210.70. This is followed by the main bottom at 1194.70. Not only will the trend change to down on a move through this bottom, but it could lead to an acceleration to the downside with the next target a long-term uptrending angle at 1193.60.
Holding above 1210.70 will indicate that buyers are still coming in to support the market. This could create enough upside momentum to challenge the high for week at 1220.50. This is followed by the main top at 1224.80 and an uptrending angle at 1226.70.
Crossing to the strong side of the angle at 1226.70 will put the index in an extremely bullish position.