Two days of sideways trading action suggests the March E-mini Russell 2000 is poised for a near-term sell-off. Overbought conditions and profit-taking ahead of the debt ceiling debate may be contributing to the overnight weakness.
The chart indicates there is room to the downside. Traders should look for an early test of an uptrending Gann angle at 859.10. Since the main trend is up, expect a technical bounce on the first test.
Based on the short-term range of 823.10 to 882.50, expectations are for an eventual break into a retracement zone at 852.80 to 845.80. The main trend is not expected to turn down. The breaks should be corrective in nature and set up the next buying opportunities.
