E-mini Russell 2000 Index

E-mini Russell 2000 Index (TF) Futures Analysis – January 21, 2013

The March E-mini Russell 2000 futures contract reached a multi-year high overnight with very little follow-through. Today’s action is expected to be limited because of the holiday in the U.S. Cash markets are closed and electronic trading closes early so don’t expect much movement.

Looking ahead to the rest of the week, although conditions may be overbought due to the huge rally since the first of the year, as long as stocks are paying the best return, look for an underlying bid.

E-mini Russell 2000 Index
E-mini Russell 2000 Index

Concerns that politicians will turn the debt ceiling issue into a long debate could be limiting gains, but there are rumors circulating that the Republicans are going to offer the President a three-month deal to allow for more discussion.

Technically, major support is at 879.10. A failure to hold this angle could trigger a correction to 857.90. 

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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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