NASDAQ 100 Index Futures Forecast December 24, 2012, Technical Analysis

The NASDAQ 100 Index futures rose after initially plunging during the Friday session. The bounce caused the candle formed for the day to end up being somewhat hammer like, and looking very supportive as the market simply could not hang on to about half of the losses that it had accumulated.

Looking forward, we still think of the 2700 level as being very important, and would need to see a broken to the upside in order to be long of this market. However, we would be remiss if we didn’t mention how resilient this market has been and the fact that it simply cannot come undone in the face of massively bad economic news is a testament to its underlying strength. With all this being said, we are more bullish than various, and would be aggressive buyers above the 2700 handle.