Daily March E-mini Russell 2000 Index

E-mini Russell 2000 Index (TF) Futures Technical Analysis – March 2, 2015 Forecast

March E-mini Russell 2000 Index futures posted a potentially bearish closing price reversal top on Friday. A follow-through to the downside will not mean the trend has turned down, but it could lead to a 2 to 3 day correction. A trade through 1214.30 will turn the main trend to down.

Daily March E-mini Russell 2000 Index
Daily March E-mini Russell 2000 Index

A trade through 1231.00 will confirm the closing price reversal top. This should lead to an almost immediate test of a long-term uptrending angle at 1228.50 then a retracement zone at 1226.90 to 1224.00.

The daily chart will open up to the downside if 1224.00 is taken out with conviction. This could trigger an acceleration to the downside with the next target an uptrending angle at 1213.90.

The key number to watch on the upside is the closing price reversal top at 1239.50. A trade through this level will negate the chart pattern, however, don’t expect an acceleration to the upside unless buyers can overcome the uptrending angle at 1241.90.

Friday’s reversal indicates the selling may be greater than the buying at current price levels. This is likely an expression of concerns about the timing of the Fed’s next interest rate hike. Investors may use this Friday’s Non-Farm Payrolls report as an excuse to cut positions. This could trigger a confirmation of the reversal top.

The tone of the market today will likely be determined by trader reaction to 1231.00. 

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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