S&P 500 Index Futures forecast for the week of December 24, 2012, Technical Analysis

The S&P 500 Index futures had a wild back and forth week as we simply could not make up our mind. We bounced off of the 1400 level, but only after falling from the 1440 level. It simply looks like this market is stuck in a fairly wicked consolidation range, and as a result it might be difficult to see any real traction in the short-term as for the longer-term trade we believe that the buyers will eventually win out.

Looking this chart, move above the 1450 level certainly would be extremely bullish and have this market climbing much higher, perhaps as high as 1500 in the relatively near term. We don’t expect this to happen between now and New Year’s though, and as a result we remain flat.