With some of the uncertainty regarding Cyprus lifted this morning, the June E-mini Russell 2000 rallied to within striking distance of its contract high at 951.30. Although the market is anticipating relative calm in the region, this story is important and traders should watch for new developments throughout the day.
Trading volume could be light today because of tomorrow’s holiday so don’t expect too much of a breakout over 951.30. A move to this level could be labored and a breakout could fail since investors will probably refrain from chasing this market higher ahead of the long week-end.
Technically, the key support number to watch is the short-term pivot at 941.40. The market has straddled this level several times this week. A break under it will indicate a shift in sentiment. Shortly before the opening, the market is expected to open well above this level. A failure to hold the pivot could draw the attention of short-sellers which will put the market in a position to challenge an uptrending Gann angle at 933.00.