Dow Jones futures forecast for the week of December 17, 2012, Technical Analysis

The Dow Jones Industrial Average rose for the beginning part of the week, only to turn around and fall to form a shooting star. This shooting star is after two previous hammers, so this suggests to us that the market is ready to go sideways.

This makes perfect sense, as the U.S. Congress continues to discuss the “fiscal cliff”, and that no real progress seems to be being made. With this in mind, we think that the market will go sideways for quite some time, or at least until Congress makes up its mind. Nonetheless, we are in the last two weeks of the year in this brings on very illiquid conditions, which of course can often cause erratic movements or even none at all.