Dow Jones Industrial Average forecast for the week of December 10, 2012, Technical Analysis

The Dow Jones Industrial Average had a nice showing this week as the 13,000 level continues offer quite a bit of support. This was shown the week before as we saw a nice hammer print at that level, and now we have broken to the upside and are presently 145 points above the closing price last week.

We do see a bit of resistance above at the 13,200 level, but if we managed to get above there we think this market can run up to the 13,600 level. Looking at this chart, it does look like the market wants to go higher, but it will need some good news out of Washington DC. Currently, Congress is discussing the whole so-called “fiscal cliff” scenario, and headlines will continue to drive the market. Any disappointment out of DC will send this market plummeting. This will be especially true as the last couple of weeks of the year drain more and more liquidity from the marketplace.