MIB Futures Forecast December 6, 2012, Technical Analysis

The MIB futures did very little during the session on Wednesday as we continue to sit just below the 16,000 level. Above 16,000 we see significant resistance going all the way to the 16,500 area, and as a result we are not ready to start buying. In fact, we feel quite certain that the resistance will eventually become too much for the buyers of this market based upon the exhausted look of this chart.

Looking forward, we think that a pullback would be necessary to build up enough pressure to break out to the upside. We also see a significant amount of support at the 15,000 level, so we don’t necessarily think any meltdown is in the future either. We suggest that a pullback to the 15,500 level is very likely at this point