E-mini Russell 2000 Chart

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

Unlike the other indices, the March E-mini Russell 2000 did not follow-through to the upside in the overnight session. This could be a sign that investors are shorting the index in anticipation of a sell-off. Often investors use the Russell 2000 as a hedge against long positions in the other major indices.

E-mini Russell 2000 Chart
E-mini Russell 2000 Chart

Technically, the index crossed over to the weak side of an uptrending Gann angle at 887.10. The index will have to regain this angle in order to generate the upside momentum we saw yesterday. The inability to hold the steep uptrending angle typically leads to a move to the next angle. This target is 855.10.

Prior to yesterday’s breakout, the Russell consolidated. This makes 868.10 to 867.70 a major support area. A break through this zone is likely to trigger an acceleration to the downside. On the upside there isn’t a clear target, but traders should note that the index is vulnerable to a closing price reversal top on the daily chart. A close under 873.70 will reverse the week, setting up the Russell  2000 for a possible sell-off next week. 

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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