S&P 500 Index Futures Forecast December 4, 2012, Technical Analysis

The S&P 500 futures fell during the session on Monday as the shooting star on Friday got triggered for sell orders. We now sit above the 1400 level, and we do think that 1400 will offer significant support. But it has also become obvious that the 1420 level is significant resistance. With this being said we see this is a very tight market at the moment and expected to be volatile going forward.

Unfortunately, this market will be held hostage to the fiscal talks going on in Washington DC. If there is some type of compromise of the market see as at least sensitive, the markets should explode to the upside. However, if the markets are disappointed, they will punish Congress with a much lower market. Going forward, we trade this market short-term only and suggests that 1400 should offer enough support that we could see some type of buy signal.