The March E-mini Russell 2000 soared late in the session on Tuesday to post a new multi-year high at 883.50. Short-covering was most likely the reason for the rally as bullish traders took advantage of thin trading conditions. Volume is down so investors aren’t putting much emphasis on the move.
Technically, uptrending Gann angle support is at 867.10. This is the first potential upside target. Since the main trend is up, buyers are likely to show up on the first test of this level. The chart indicates that a break though this angle could trigger a sharp move.
Based on the 823.10 to 883.50 range, a key retracement zone has been established at 853.30 to 846.20. This is the ultimate downside target should sellers gain control of the market.
