Daily March E-mini Russell 2000 Chart

E-mini Russell 2000 Index (TF) Futures Analysis – January 22, 2013

The March E-mini Russell 2000 futures contract rallied to 895.00 overnight before meeting resistance. Selling pressure took the market lower, putting the index in a position to post a closing price reversal by the end of the session today.

Earnings concerns as well as a stronger Japanese Yen are weighing on equity prices this morning. This trend is likely to continue shortly after the opening.

Daily March E-mini Russell 2000 Index Chart
Daily March E-mini Russell 2000 Index Chart

Technically, the first downside target is 883.10. A failure to hold this angle could trigger a sharp break. Based on the main range of 823.10 to 895.00, the next downside target is the retracement zone at 859.10 to 850.60. Another uptrending Gann angle is at 853.10, making 853.10 to 850.60 a key support cluster.

The Russell 2000 follows small-cap stocks. Today the pressure is on the large cap stocks so the index may follow the bigger indices lower but not necessarily with the same magnitude. 

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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