NASDAQ 100 Index Futures Forecast December 20, 2012, Technical Analysis

The NASDAQ 100 Futures fell during the session, and especially towards the end of the day as all indices in the United States did. The market looks like it’s ready to reenter consolidation, and now we look at the breakout above the 2700 level as a bit of a “false breakout.” Because of this, we think that this market will continue to chop around, and it is still obviously held hostage to the so-called “fiscal cliff” discussions in the United States, as it was headlines and comments coming from that general direction that really put the market down. We think that selling is the only thing you can do at the moment, but recognize that we will more than likely stay within the recent consolidation zone between 2600 to 2700 going forward. Of course, headlines can break us right out or down at a moment’s notice. This is exactly what’s going to make trading this market to difficult.