S&P 500 Index Futures Forecast December 6, 2012, Technical Analysis

The S&P 500 Index futures fell initially during the session on Wednesday, but had a significant amount of support at the 1400 level in order to push the market back up and formed a small hammer. This hammer suggests that we are ready to bounce again, but probably not too awfully far before we start to see pushback from the sellers. Because of this, we feel that this market will be choppy and sideways overall during the next couple of weeks.

However, we think that a positive announcement out of Washington DC involving the fiscal talks could push this market much higher in a very rapid fashion. However, looking at the conversation and where it seems to be going, it is looking more and more likely that we will go over the so-called “fiscal cliff” at the end of the year in the United States. This will most certainly weigh upon the market, and probably start sometime fairly soon and less serious progress is made.