Daily March E-mini NASDAQ-100 Index

E-mini Russell 2000 Index (TF) Futures Analysis – March 7, 2013

Better-than-expected weekly jobless claims is triggering a rally in the March E-mini Russell 2000 this morning. The strong move puts the futures contract in a position to challenge the all-time high at 933.20 later in the session.

Although the weekly jobs data is the catalyst behind this morning’s move, investors may use Friday’s U.S. Non-Farm Payrolls report as an excuse to take profits later in the session. This could lead to a volatile, two-sided trading session later today. A strong short-covering rally in the Euro is also driving up demand for higher-risk assets.  

Daily March E-mini NASDAQ-100 Index
Daily March E-mini NASDAQ-100 Index

Technically, the March E-mini Russell 2000 is in an uptrend on the daily chart, but it is lagging the Dow and S&P 500 in terms of performance. This is probably related to a shift in allocation as the major players feel there is going to be a better return in the mid and large-cap equities.

Traders should continue to press the long side, but at a cautious pace. The biggest fear at this time is getting trapped at a top. Profit-taking could hit at any time. This means that investors should start watching for closing price reversal tops on both the hourly and the daily chart. This chart pattern wouldn’t necessarily mean the trend is changing to down, but it could trigger the start of near-term correction.

Technically, the main support is 920.50. Today’s upside target is the February top at 933.20. 

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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