Daily June E-mini Russell 2000 Index

E-mini Russell 2000 Index (TF) Futures Analysis – March 15, 2013

The June E-mini Russell 2000 Index reached a new high overnight at 950.30. This move keeps the uptrend intact, but shifts the focus on the possibility of a closing price reversal top. Currently, the index is in the window of time for a reversal, but the buying pressure has been relentless.

Daily June E-mini Russell 2000 Index
Daily June E-mini Russell 2000 Index

With a trend of this magnitude, investors cannot stop thinking about protecting the downside since markets tend to go down faster than they go up. Besides the closing price reversal top, traders should also watch uptrending Gann angle support at 941.00. This angle has provided both strength and direction since the bottom at 889.00 on February 26. Breaking this angle could trigger the start of an acceleration to the downside.

Unless the market starts to show signs of forming a top, it doesn’t make sense to try to pick a top. If you feel the need to be aggressive then wait for something potentially bearish to show up on the intraday charts. Like the daily chart, a closing price reversal top on the hourly chart will probably be the earliest indication that a top is forming. 

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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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