CAC 40 Index Futures Forecast December 6, 2012, Technical Analysis

The CAC futures did very well during the session on Wednesday, and even closed above the €3600 level. However, what was even more impressive was that we broke above the two previous shooting stars and order to do so. We now look at this is a very bullish market but need to see about 10 more points taken out to the upside in order to be completely comfortable with this move.

This is essentially because of the fact that the market looks at the €3600 level as significant from a longer-term perspective as well. We believe that if we can clear the €3610 level we should see a significant longer-term move, so we are more than willing to give this market a little bit more room to prove itself. As for selling, we don’t see the opportunity at the moment.