NASDAQ 100 Index Futures forecast for the week of December 24, 2012, Technical Analysis

The NASDAQ futures rose during most of the week over the last five sessions, but failed at the 2700 level. This level has been significant resistance for some time now, and the fact that we formed a shooting star isn’t lost on us.

A break of the bottom of this week candle would also clear the 2600 level; we think that opens the door to 2500. Breaking below 2500 really could give this market moving down another 100 points to the 2400 level as well. However, we are looking at very thin and illiquid conditions over the next week or so and as such are very leery of taking these trades until after New Year’s. Alternately, a break above 2700 would be extremely bullish and we would have to be long at that point.