S&P 500 Index Futures forecast for the week of December 10, 2012, Technical Analysis

The S&P 500 futures had a fairly stable we all things considered. By the end of the five sessions, we formed a bit of a hammer just above the 1415 level. When you think about all the things going on right now, this is actually somewhat impressive. This looks like we want to continue to grind higher, and this is especially true when you throw in the fact that the previous week had formed a hammer as well.

The real question of course will come down to the fiscal cliff discussions going on in the United States. Right now, plenty of companies are making enough money to push stocks higher, but there is far too much fear in the marketplace because of the fiscal talks. Also, liquidity should start to come out of the marketplace by the end of next week. With this being said, we do have an upside bias in this marketplace, but would need to see a move above the 1420 levels to make an attempt at 1450. As far as selling is concerned, a break of the bottom of the previous weeks hammer would be enough to get us to start selling again.