The March E-mini Russell 2000 index rallied to a new high for the year on Thursday. The surge in prices has put the index in a position to post a solid weekly gain. With a clearly defined uptrend taking place, the only concern for long-traders should be the technical closing price reversal top chart pattern. This will only occur on the daily chart if the market makes a new high and closes lower, or on the weekly chart on close under 912.60.
Another sign of weakness will be the failure of an uptrending Gann angle at 913.10. A move through this level will not change the trend to down, but will indicate that the selling is greater than the buying at current price levels. A break through this level is likely to trigger a break into a retracement zone at 907.50 to 903.50.
Outside influences could control the market today. A sell-off in risky currencies coupled with a rapid rise in the U.S. Dollar could pressure the equity markets. A strong rally in the Japanese Yen could also encourage investors to take a little bit off of the top.