FTSE 100 Index forecast for the week of December 3, 2012, Technical Analysis

The FTSE 100 had a very volatile week as did most indices around the world. However, it is plain to see that the 5900 level is the beginning of serious resistance in this market, and as such shorting in this general vicinity is favored. The daily chart shows a massive shooting star on Friday, so we conclude that this market is ready to pullback. With this being said, we are shorting this on Monday morning as we think that a pullback to the 5750 level is very likely at this point. Alternately, if we do manage to go higher and break above the 6000 level, this would be an extremely bullish sign and it would become a buy-and-hold type of market.