Greater demand for higher risk assets triggered an upside breakout in the E-mini Russell 2000 futures contract. Momentum is driving this market today so there is no solid upside target at this time. Typically, a rally driven by momentum and short-covering will move higher until the weakest short is taken out.
Technically the index is straddling an uptrending Gann angle at 879.10. This angle is controlling the strength and direction of the market. It may even act as a pivot price at times until the market establishes its value.
A sustained break under 879.10 will be the first sign of weakness. A trade through 868.10 will turn the minor trend to down. Traders should also look for an acceleration to the downside if 867.70 is violated.
If the market closes under 879.10 and can attract sustained selling pressure then traders should brace for a possible move to 851.10 over the near-term.
In summary, traders are likely to press the upside early in the session since this seems to be the way of least resistance. Since the market is being driven by greater demand for higher risk assets, the index should continue to move higher as long as this demand can be sustained. If the rally is all short-covering with little or no fresh buying then it is not likely to last, setting up the index for a possible reversal to the downside.