Traders are looking for the March E-mini Russell 2000 Index to open lower on Tuesday. Lower demand for higher risk assets is helping to keep a lid on the upside price movement. Today, investors will be given the opportunity to react to U.S. housing and consumer confidence data. Housing is expected to improve while consumer confidence may show a sharp drop. Ford (F) and Amazon (AMZN) are the stocks to watch today.
The reaction to the reports may be short-lived, however, since the Fed begins a two-day policy meeting and on Friday, the U.S. announces its latest jobs data. The Fed is expected to keep its loose monetary policy in the hopes of stimulating the economy.
Technically, the main Gann angle to watch is 899.10. This long-term angle has controlled the direction of the market since late December. A break through this angle will be a strong sign that sentiment is turning weaker.
The daily chart indicates that there is plenty to room to the downside if traders can sustain the move under the uptrending Gann angle. Based on the short-term range of 823.10 to 907.20, the next major downside target is a retracement zone at 865.20 to 855.20.