E-mini Russell 2000 Index (TF) Futures Technical Analysis – October 29, 2014 Forecast
December E-mini Russell 2000 Index futures soared on Tuesday, closing at 1147.70 and putting the index in a position to challenge a main top at 1161.50. Taking out this top should lead to a quick test of a downtrending angle at 1162.20. This is the last major angle before the September 12 top at 1169.80 and the contract high at 1182.20.
Falling back below 1142.20 will be a sign of weakness today. If the selling pressure persists under this angle then look for the market to continue to weaken into a steep uptrending angle at 1134.60.
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Like the other indices, the Russell is in the window of time for a potentially bearish closing price reversal top. Traders should watch the intraday action for early signs of selling pressure.
The Fed monetary policy announcement at 2:00 pm EDT should produce volatility. Since the index is up twelve days from the 1038.60 bottom, no one is certain how much of the Fed news has already been priced into the market. This could produce a potentially bearish “buy the rumor, sell the fact” situation which could lead to a reversal into the close.
The tone of the market today is likely to be determined by trader reaction to the angle at 1142.20. This price may act like a pivot early in the session until traders decide which way they want to move the index.