The June E-mini Russell 2000 Index gapped lower overnight, setting up the start of a potential wash-out to a major retracement zone at 920.00 to 912.70. After the initial break, traders did gather themselves, creating a short-term low at 933.50 and setting up a possible rally into the gap at 944.00 to 945.10.
Although the main trend is up, the market did break a major uptrending Gann angle at 945.00. This angle had provided support and direction since the market bottomed at 889.00 on February 26. Look for 945.00 to act as a pivot price today.
Trading is likely to be volatile and news driven. This could mean sudden stops and starts in either direction. Fundamentally, bearish news out of Cyprus has created uncertainty in the market and this is leading to the weak bias. Although the main trend is up on the daily chart, it looks as if investors are in the protective mode and willing to cut positions to preserve their capital.