NASDAQ 100 Index Futures Forecast December 5, 2012, Technical Analysis

The NASDAQ 100 futures initially rose to the 2700 level during the session on Tuesday, but found this all-important resistance area to be far too strong to overcome. The result was a shooting star for the session, and although we sit upon significant support, it does look like we are heading back down towards the 2620 level before it’s all said and done.

Looking at this, we think that this market is due for a pullback and we may be getting it right now. On a break of the 2650 level, we are comfortable enough to start shorting, but in a conservative manner and not in an overly large position. As for buying, we need to clear the 2700 level in order to even consider it.