S&P 500 Index Futures Forecast December 7, 2012, Technical Analysis

S&P 500 futures rose during the session as we bounced off of the 1400 support level during the Tuesday trading day. As we head into the nonfarm payroll Friday, we find ourselves consolidating between the 1414 20 levels. Because of this, it will take an extraordinary number in one direction or the other to move the marketplace and we think that we will simply turn sideways as a result.

With this in mind, we will wait until the daily close and see if we managed to break out of one of these levels before placing a trade. If we are above 1420 on a daily close, we would be buying on Monday morning. Alternately, if we are below the 1400 level on a daily close we would be selling that same morning. Until then, we think this market bounces around and expect an extreme amount of volatility during the US session today.