Daily June E-mini Russell 2000 Index

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

The June E-mini Russell 2000 Index is trading better this morning. The market is reacting to positive developments in Cyprus overnight. This could mean that the European Central Bank and the Cypriot government are close to reaching a bailout deal. This story is likely to influence the market throughout the day.

Technically, the market is trading a little better than a pivot price at 941.30. This price represents the mid-point of the 951.00 to 931.60 short-term range.  Holding above this price and regaining the Fibonacci level at 943.60 will put the market in a strong position.

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

Crossing back to the weak side of 941.30 will be a sign that sentiment is shifting to the downside. A trade through 936.30 will be the first sign of weakness. A move through 931.60 will turn the minor trend to down and could trigger a break into an uptrending Gann angle at 925.00.

The main trend is still up so there is a slight bias to the upside. Momentum, however, is at a standstill. This usually means impending volatility. Conditions could be choppy throughout the day, but as we near the end of the session, if a deal isn’t reached between the ECB and Cyprus, there could be a sell-off into the close. 

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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