S&P 500 Futures Forecast December 17, 2012, Technical Analysis

The S&P 500 futures attempted to rally during the session on Friday, but failed again at the 1420 level in order to form a shooting star. However, we see quite a bit of support at the 1400 level, so it’s very unlikely that we go much farther down unless of course there is some type of headline shock.

That headline shock of course is the so-called “fiscal cliff” talks in the United States, and until that is resolved there is always going to be some type of headline risk with the market. However, we see far too much support below in order to start selling at this point. In fact, we don’t consider the support area broken down until we get below the 1380 level. As for buying, we need to clear the highs from the Wednesday session at roughly 1430.