E-mini Russell 2000 Index (TF) Futures Technical Analysis – October 17, 2014 Forecast
December E-mini Russell 2000 Index futures surged to the upside on Thursday while posting a higher close. Unlike the other major indices that are still trying to establish support, the Russell has built a nice short-term support base and new main bottom at 1038.60. The index has also chewed through a couple of downtrending angles, putting it in a position to breakout to the upside.
The key angle to watch today is 1081.50. Taking out this angle with conviction could launch a rally into a pair of main tops at 1101.20 and 1106.50. A breakout over 1101.20 will turn the main trend to up on the daily chart.
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The main range is 1182.20 to 1038.60. Its retracement zone at 1110.40 to 1127.30 is the best upside target. Additional targets are a group of downtrending angles at 1118.20, 1119.80 and 1121.50.
If there is no follow-through to the upside and the market begins to break then look for support at 1070.60 and 1054.60.
The tone of the market today will be determined by trader reaction to 1081.50. This price may act like a pivot. It all depends on the volume and volatility today.