Dow Jones Industrial Average Futures Forecast December 27, 2012, Technical Analysis

The Dow Jones futures fell slightly at the open, and then just essentially slumped during the Wednesday trading session. We still managed close above the 13,000 level however, and this of course still suggests that we are essentially consolidating. Because of this, we are not necessarily ready to start selling, although we do think this market has shown a bit of a downward bias lately. We think that supportive candles in the general vicinity that we are in right now could be bought and then the trader can target the 13,300 level.

We see quite a bit of support just below the 13,000 level as well, so we are a little bit hesitant to sell at all. We think that the low-volume over the next several sessions will not be conducive to any type of selloff unless of course we get very negative headlines out of Washington DC. Otherwise, we will either buying or simply be flat over the next week or so.