S&P 500 Futures Forecast December 26, 2012, Technical Analysis

The S&P 500 futures fell during the shortened Christmas Eve session on Monday as traders continued the bearishness that was seen on Friday. Granted, we saw a nice bounce off the 1400 level towards the end of the Friday session, and this will set up quite a bit of support between here and there. With that in mind, it is going to be difficult to short this market unless we managed close well below the 1400 level on the daily chart. In fact, we think that is more likely that we see some type of supportive candle between here and there, but until we see it we cannot buy either.