MIB Index Futures forecast for the week of December 10, 2012, Technical Analysis

The Milanese Index futures attempted to break out above the 16,000 level this past week, but failed and formed a shooting star. While this would normally be somewhat concerning, it should be noted that the week before produced a hammer as well. This suggests to us that we will see back and forth action in the short-term and possibly through the remainder of the year. This would make sense, as liquidity dries up during the month of December in the futures markets, and especially smaller ones such as the MIB. With this being said, this does not look like a long-term traders market to us until we break out well above the 16,500 level, or break down below the 15,000 level.