E-mini Russell 2000 Index (TF) Futures Technical Analysis – October 9, 2014 Forecast
On Wednesday, December E-mini Russell 2000 Index futures took out the previous low for the year at 1064.30. Trading down to 1060.40 turned the index into a Bear Market for the year before value-seekers came in to trigger a sharp reversal to the upside.
The short-term range is 1106.50 to 1060.40. The pivot price created by this range at 1085.40 is controlling the short-term direction of the market.
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The first upside target today is a long-term downtrending angle at 1093.80. The next angle comes in at 1105.50. This is followed by the main top at 1106.50.
Taking out the angles will be signs of strength, but crossing over 1106.50 will turn the main trend to up on the daily chart.
The main range is 1161.50 to 1060.40. Its retracement zone at 1112.90 to 1124.40 is the main upside target. Before getting too bullish on a trade through 1106.50, traders will have to deal with the retracement zone.
If there is enough upside momentum then look for an eventual breakout over the upper, or Fibonacci level at 1124.40. This should trigger a move into a cluster of three downtrending angles at 1130.20, 1131.80 and 1133.50.
The tone of the day will be set by trader reaction to the pivot at 1085.40.