Dow Jones Industrial Average Forecast December 10, 2012, Technical Analysis

The Dow Jones futures rose during the session on Friday as the jobs number out of the United States with much better than expected. However, there still so-called fiscal cliff concerns right now, so this will put a damper on a lot of bullishness that we see in the market currently.

We think that the 13,200 level will have to be overcome in order to start buying again, but if we managed to do that the Dow Jones should run up to the 13,500 level before runs into massive resistance there. It’s at that point we really begin to grind and try to get above the 13,600 level, which of course would signify a massive breakout to the upside.

However, it’s highly unlikely that we will see anything like this over the next couple of weeks unless we get a resolution to the fiscal talks in the US. Without that, we think that we could see a lot of volatility, and choppiness, and a meltdown if the markets don’t get what they want.