Dow Jones Industrial Average Futures Forecast December 7, 2012, Technical Analysis

The Dow Jones Industrial Average futures had a strong session on Thursday as we broke the top of a shooting star that was just at the 13,000 level. However, we see quite a bit of resistance all the way up to the 13,200 level, and there are nonfarm payroll announcement coming out later today. Because of this, we think that it’s probably best to stay out of the market for the next 24 hours, and base your trading decisions on the daily close for the session.

If we managed close above the 13,200 level, this would be extraordinarily strong and we would have to start buying. However, if we get a bit of a meltdown and finish below 12,900, we need to start thinking about selling. Are base case right now is that we will simply consolidate sideways as the fiscal cliff talks will more than likely take center stage for the next couple of weeks.