Daily March E-mini Russell 2000 Index

E-mini Russell 2000 Index (TF) Futures Analysis – February 11, 2013

The March E-mini Russell 2000 extended its gains overnight after closing on its high on Friday. Positive economic news from the U.S. and China were the apparent catalysts last week. Low volume on a new high is typically an indicator of impending volatility so traders should watch for abrupt reversals in direction. The lack of fresh economic news could also contribute to a two-sided session.

Daily March E-mini Russell 2000 Index
Daily March E-mini Russell 2000 Index

Technically, the main trend is up. The main trend turns down on the daily chart following a break through the January 31 bottom at 891.10. With the index extending its gains overnight, traders should watch for a potential closing price reversal top to signal the start of a near-term break.

Besides the higher-high, lower-close formation, a breakdown through an uptrending Gann angle at 907.10 will be a sign of weakness. 

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.

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