Daily June E-mini Russell 2000 Index

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

The June E-mini Russell 2000 Index is trading better this morning. The index seems to following the major indices higher. Yesterday’s Fed policy statement continues to support the market. The Fed said that it would continue to provide liquidity to the market and that it had no plan to slow-down asset purchases nor end the program earlier than expected. This means that as soon as the market can move out of its current short-term trading range, higher prices are likely to follow.

The short-term range is 951.00 to 931.60. The pivot zone of this range is 943.60 to 941.30. As long as the market can stay above this zone, it is likely to continue its rally.

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

Today’s Philadelphia Fed report could move the market later in the session, but the situation in Cyprus remains the wildcard. Overnight the European Central Bank issued an ultimatum to Cyprus to accept the bailout terms or risk a cut-off of support. An outright rejection of the terms could trigger as break as investors are likely to dump risky assets.

So despite a firm tone early in the session, there is still the possibility of a reversal if certain fundamental events take place in Cyprus.  

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.

Leave a Reply

Your email address will not be published. Required fields are marked *