E-mini Russell 2000 Index (TF) Futures Technical Analysis – May 6, 2016 Forecast
June E-mini Russell 2000 Index futures are called lower after the release of the weaker-than-expected U.S. jobs report. Today will be all about momentum and whether sellers can sustain the pre-market weakness.
The main trend is down according to the swing chart. The market is also trading on the weak side of a retracement zone at 1110.60 to 1119.00.
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Based on the current price after the report and before the opening at 1101.50, the direction of the index the rest of the session is likely to be determined by trader reaction to the uptrending angle at 1104.50 and the downtrending angle at 1106.40.
A sustained move under 1104.50 will indicate the presence of sellers. The first downside target on the daily chart is an uptrending angle at 1094.00. This is the last potential support angle before the 1083.50 main bottom.
Overtaking 1106.40 will signal the presence of buyers. This could create enough short-covering momentum to drive the market into the Fib level into 1110.60. Overcoming this level could extend the rally into the 50% level at 1119.00.